Don’t expect Nifty to fall sustainably below 6000: Varun Goel, Karvy Private Wealth

In a chat with ET Now, Varun Goel, Head of PMS, Karvy Private Wealth, shares his market outlook. Excerpts:

ET Now: What is your opinion as to where we are headed from here?

Varun Goel: My own sense is that it is unlikely that we fall sustainably below 6000. Definitely, there is a short-term reaction both to the RBI policy and what has happened in the US yesterday, but I do not believe there is a lot of downside left in the market.

The lot of high beta sectors like banking have already corrected quite a bit. We ourselves had done quite constructive baking a couple of months back, but looking at what the RBI governor said, it is unlikely that interest rates would come off any time soon. Hence, there is a reason to revisit the whole hypothesis on the banking space as a whole. I do not see a lot of correction or downside still left from here.

Therefore, my own sense is that the market will probably be in a small range and look at both political and global cues in the times to come.

ET Now: What is it that you would be looking at in terms of individual stocks?

Varun Goel: The telecom space has corrected quite a bit in the last two-three weeks. The operational results were pretty good. Most of the companies delivered margins which are in line with expectations. The ARPUs were pretty healthy. The overall consolidation story is playing out quite well. We believe that the telecom space has already seen its worst in terms of competitive intensity and no player will probably behave that irrationally this time. Telecom is our top sectoral pick at this point of time.