Use this opportunity to build longer-term portfolio: 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: Do you think that the current market consolidation is just a preparation to move higher? Is this a good time to build position?

Varun Goel: The macroeconomic parameters and data had surprised us with an IIP on the positive at 3.4. The WPI inflation showed some signs of pricing power returning to the manufacturing space. There was an uptick in auto sales numbers this month. Cement prices have been quite firm. The macroeconomic indicators all around us do indicate that the worst in terms of the economy is behind us.

The new government is in place, which has triggered a new enthusiasm regarding the economic turnaround. If all the talk about reviving the investment cycle actually gets played out, the economic recovery could occur much earlier than market expectations.

Definitely, the outlook remains extremely positive from medium to long-term perspective. In the short term, we might have some turbulence because of tensions in Iraq and the spike in crude oil prices, but one should use this opportunity to build in longer-term portfolio.

ET Now: What are your ideas?

Varun Goel: In my opinion, another 5% to 10% correction would make oil and gas companies extremely attractive. With diesel subsidies almost gone in the next few months, that is one space which should look extremely attractive. We will wait for another 5-10% correction after which we expect that that will open up huge entry opportunities.