Looking at value picks in India, China: DMG & Partners Sec

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Asia hoping for stability in US mortgage mkts: DMG Partners ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Some of the Asian markets are in the green. Gabriel Yap , Senior Dealing Director at DMG & Partners Securities says investors are sitting on the sidelines until US Congress passes the bill.

He told CNBC-TV18 we are looking at value picks in India and China as those markets have fallen almost 50-60% this year.

Here is a verbatim transcript of the interview with Gabriel Yap on CNBC TV18. Also see the accompanying video.

Q: Still lot of cautiousness in the market how do investors trade it? Which sectors do you particularly like? Which markets do you particularly like in Asia?

A: Generally for this week, until the Congress actually passes the bill, a lot of investors have decided to stay on the sidelines to look at the details. Essentially most markets in Asia have been hammered down very badly. The key markets which have fallen the most this year are India and China; both markets have come down as much as 50-60%. So we are looking at value picks in these two markets in terms of percentage falls but unfortunately the macro picture for both India and China does not suggest us a sustainable rally, until and unless you get a good measures of both monetary and fiscal policies from their governments to help boost the markets.

Essentially in China this is what they are looking for simply because the fact that the Olympics are over but unfortunately things like the milk scandal in China is still buffeting the market.

In the rest of Asia the defensive ones have done rather well this year like Indonesia and Malaysia, so if you have a defensive stance then this is where you would be positioning your portfolio.