Asian mkts spark as oil prices cool off: Puru Saxena

It is a sea of green all across the Asian markets except Nikkei which is closed for trade today. Puru Saxena,CEO of Puru Saxena Wealth Management says the smart rallies seen in the Asian  markets is due to cool down in oil prices.

Speaking to CNBC-TV18 he said, “Crude oil has put in an important medium-term top and it is quite likely to correct down to perhaps USD 100-110/bbl and as long as prices of oil is coming down stock markets are going to benefit especially the oversold conditions.”

Excerpts from CNBC-TV18's exclusive interview Puru Saxena:

Q: What is your sense, we have seen pretty smart rallies today 2.5-3% in most of those Asian indices, is it cooling crude or is it easing credit concerns that is sparking out this rally today?

A: I think this is mainly due to the fact that price of oil has come off quite sharply in the last week. My feeling is that crude oil has put in an important medium-term top and it is quite likely to correct down to perhaps USD 100-110/bbl and as long as prices of oil is coming down stock markets are going to benefit especially the oversold conditions. So we might get a tradable rally for the next few weeks in stocks.

Q: What is the call on India now we have an extremely crucial political week ahead, what is your stance in the country now?

A: I do like India along with China and these are the two leading countries, which are likely to do very well over the long-term. However over the next two or three years, I see some concerns for India; inflation being one, the price of the oil being the other and I think the biggest risk to the global economy and this is not just an Indian problem is that the supply of oil has peaked at a time when demand is rising still at these prices.

Unless our world finds another viable source of energy that will replace oil, I suspect most economies are going to suffer especially countries like India, where in fact all of the oil is imported, oil producing nations such as Russia, the Middle Eastern countries are likely to do much better over the next three to four years when compared to commodities importers such as India.