Here's why market veteran Madhu Kela believes now is your chance to build a portfolio

"If you look at the overall performance of banks, the private banks have delivered 23 percent negative returns in the last three years. Similarly, if you look at the PSU banks, they have been almost flat as a basket because SBI has been a big performer... In the last eight years, there has been unprecedented amount of clean-up which has happened from the banking sector," he said.

Kela added that PSU banks have made provisions of Rs 12.9 lakh crore while private banks have made provisions of Rs 3.9 lakh crore in the last eight years. He prefers State Bank of India, Canara Bank and Bank of Baroda among PSU banks and ICICI Bank in the private lenders' space.

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Among the other spaces they are investing in are manufacturing companies, engineering, procurement and construction (EPC) companies and midcap pharma companies.

According to him, a large part of the foreign institutional investors' selling seems to be over and some FIIs may look to buy, following a sharp correction seen in the currency market.

"If you see a one month back, the number (FII selloff) used to be Rs 5,000 crore, Rs 6,000 crore, Rs 7,000 crore a day. Now it has fallen more reasonably. Last maybe 15-20 days, the average (selling) would be Rs 1,500-2,000 crore," he said.

"We are entering a very good cycle and we are at the very early stage of this cycle," he added.