Asian markets are extremely oversold: Puru Saxena

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Asian markets are trading mixed. Puru Saxena , CEO of Puru Saxena Wealth Management believes that for the short-term Asian markets are extremely oversold. Speaking to CNBC-TV18 he said, in a bear market, oversold markets tend to consolidate at those levels and become even more oversold.

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

Q: We have seen some bit of resilience in Asia over the last few days even yesterday with crude bouncing back to USD 141/bbl we are not seeing any massive sell off, are we just too oversold in most of Asia?

A: In the short-term, yes I believe the markets are extremely oversold. However that does not mean that we should get a massive rally from here because in a bear market, oversold markets tend to consolidate at those levels and become even more oversold.

So if we do get any rallies, I would urge your viewers to start liquidating their holdings, which are likely to not do very well in this scenario of increasingly expensive oil prices and focus more on the resources companies.

Q: You also track the commodity sectors rather carefully in the entire Asian pack. What is your call now?

A: We are very bullish on natural resources. My firm manages money for clients and we have been investing in companies involved in the commodities arena for the last 5-6 years. Even today our biggest holdings are in energy, in food companies, in metal mining companies.

I believe that this current situation is very similar, if not worse than the 1970's when we had that huge inflationary scare and sky high interest rates all over the world. During that time most of the assets did not perform, only commodities and companies involved in that business did very well. I think we are going to see similar patterns emerge in the next few years, so we are overweight resources in a massive manner.