Worst over for India & Asian markets: Venus Capital

He also says that the fundamental story of India and Asia are still intact, adding that inflows are being seeing from US and European clients.

Venus' top pick is Rolta India , and they are also positive on GTL and Webel Solar .

Excerpts from CNBC-TV18's exclusive interview with Sandy Mehta:

Q: In the last couple of days we had some relative stability. Do you think the worst is over or is there more pain left?

A:  We think the worst is over in India as well as in other Asian emerging markets. I think the valuations are quite supportive and despite the volatility in the market, I think the fundamentals and growth story throughout Asia remains very much intact. 

Q: Have you been buying a little bit, or have you increased your cash holdings in these past few weeks ?

A: We have been buying in this opportunity offered. Individual stocks have come to very attractive valuations. So we have been picking our stocks and adding to some of our existing holdings in India as well as across Asia.  Those are the markets we focus on.

Q: We heard of some panic redemption when the sell-off was happening in emerging markets. Has that abated or are you seeing any redemptions anecdotally also for your fund?

A: We are hearing of anecdotal redemptions here and there. But a lot of our clients are quite relaxed and view this as a short- term phenomenon. We have seen this kind of volatility in the past as well, there were two months last year when the Asian markets had pulled back quite violently.  But then they recovered. So generally I think the client base is quite relaxed and people are looking to add in this weakness.

Contd on page 2