Et now: in this market the FMCG package is really the FMCG package. In fact, the sentiment was, because of the results that come to the fore, whether it is HUL, a good view. We also see a VolumePick -Up to take place there. So, the entire FMCG package also because the domestic is confronted, will be the theme that goes further, because the rate has in any case caused a lot of fear in the market. So, does FMCG see consumption that look like a safe haven?
Sunil Subramania: You see now, yes, because in the weeks before FMCG has not been performed from a relatively value perspective, there is a pure domestic type of sector. Secondly, it is that you saw that raw material prices generally relieve. FMCG is therefore a huge consumer of raw materials. It is therefore expected that the sales volume will pick up, but the margins must also be granted.
Third is of course the overall monsoon. You see the effect of the monsoon, even on the sale of two -wheelers. So, monsoon definitely has a positive effect on the bottom of the pyramid customer in the rural areas and FMCG, as you know, is also largely driven by the nationally oriented sale. So the positive prospects for the rural economy translate into the FMCG package and the reason that it keeps fort there, although other consumption-related sectors such as reality and car is under pressure because it did not perform in the weeks before, so there is a sort of catch-up rally that happens there.
But I am looking forward to it, because the entire consumption package whether you consider it as a sustainable consumer ships, you consider it a car, you consider it real estate, or you take high-end retail, all these are insulated to a certain extent of the tariff-related care and therefore there will be a purchase step.
What happens here is while they still correct, for see, see, household fund managers are those who have to support the market, but what happened is that they have been placed in the month of June and in July and in July and in July since April, May June, in May and in July and in July. So you look at that RS 2 Lakh Crore was deployed by diis from April, May, June, July.
So, to a certain extent I saw that the investment fund -saldi that have been purchased up to 7.5% have come. What I say is that there is still some money that they can use, but much of it has already been used. So today because of the FIIs selling, if fund managers want to buy, even yesterday you saw that there were five foreign thousand crores from Fii sales and five odd thousands of crores of domestic purchases, but the markets were still under some pressure.
The point is that managers of household funds have less room to buy what they are positive about. They can only buy what the FIIs sell, that’s the second point. The third point is that they are also a bit smart and wait until some correction happens before they buy what they want to buy anyway, but do not withdraw today because they know that there is busy from the rate -related FII front so that they wait behind it.
So the volatility will take place, but in the end managers of household funds will come in and buy domestic oriented sectors where consumption is of course at the top of the line, but I also draw attention to capital goods because you saw the figures indicate that this and if your consumption improves the soil, then you will not be able to use the general use, the capacity use will go up the use of the IS the users’s use, the users of the use of the usters, the use of the usters, the use of the usters, will use the use of the use of the use of the usters, the use of the use of the use of the use of the usters’s use. help figures.
Et now: move forward and again to the tariff implications and another sector that felt the heat because of the rate announcements was the textile space. Now India is the fourth largest exporter of textile and clothing to the world. How important is the potential impact of Trump’s tariff movement on Indian textile extenders, the global competitiveness, what is your short look?
Sunil Subramania: My short display is first of all that today it is a knee shock reaction. It is specific because we seem to have an adverse rate compared to the competition such as Bangladesh and those in that segment. But why do I feel that it is quickly exaggerated, because if the interim deal is signed, this is at the top of the table that India at least wants a level playing field with our other competitors in the textile field. So I think it is about 5% to 7% less rate for us today, so we will at least be on that front that I think we will succeed, that’s number one.
Number two is that the government still has a tool to use, which currency cancellation is to compensate for the difference. So if we let our rupee weaken a bit, we can compete.
The third is that this is a good trigger for productivity improvements, including some mechanization in the textile sector and India is the fourth largest there, we have the opportunity to do that. So we will come out of this crisis very quickly.
So I would say that for a person who is willing to take a little more volatility and uncertainty around that sector, it is a good time to collect that sector, because it has been a strong sector for us historically and we will come winners. Yes, there will be volatility in the short term, but as I want to use a Hindi word Darr Ke Aage Jeet Hai (victory is further than fear)Certainly in textile we will not give up our leading position. The government will certainly do its best to support that.
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