Varun Goel positive on auto space

Varun Goel, Head - PMS, Karvy Private Wealth is positive on auto space.

Goel told CNBC-TV18, "There is definitely rally emerging as far as the auto space I concerned. I think the correction has been disproportionate. We do believe that this year there would be some amount of volume slowdown especially in the two wheeler space. But I think a 10% kind of a volume growth is very much possible." He further added, "We were going to see some expansion in margins because of the correction in commodity prices and especially those companies which are geared towards the export market would definitely benefit from the rupee depreciation that we have seen so far this year. So I think overall we would be positive on the two wheeler space. We would be quite positive on the companies which are geared towards the agricultural space. I think we are expecting a good monsoon and companies which are geared towards the agricultural segment should also benefit."