Amid current geopolitical challenges and a slowdown in global growth, veteran emerging market investor Mark Mobius called India a safe haven for investors, backed by a stable government. The renowned investor, who is excited about the opportunities available in India, said the country is now the second largest in the portfolio of Mobius Capital Partners after Taiwan. Calling India a "land of opportunities and innovation", he said that his optimism about India is driven by the stable government and young demographic, with an average age of 27 years.
The Indian markets have risen 5.2 per cent in the last five days, but Mobius, who has one of the largest exposures to India among Brazil, Russia, India, China (BRIC) countries, says he cannot say the correction is over in the Indian markets.
Consumers and commodities are his favourite sectors at the moment.
In an exclusive CNBC-TV18 interview, emerging market guru and CIO of Templeton Asset Management, Mark Mobius, gives his take on emerging markets.
Mark Mobius doesn't see any crisis brewing in emerging markets.
For past two years, a lot of money has piled up in banks.
Mark Mobius, the 71-year old investment guru and executive chairman of Franklin Templeton Investments, has a positive view on the Indian market and feels that stock valuations have become attractive after the 27 per cent cut in benchmark equity indices since late January.Stating that it was difficult to predict the end of the current phase, Mobius said he expected the decoupling to continue in the long term.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
Mark Mobius says the long-term trend for the Indian market is good and India has done better than other markets.
Mark Mobius, executive chairman of Templeton Emerging Markets Group still believes in the emerging markets growth story.
Investors should be prepared to invest for the long-term. Stock prices are not only dependent on fundamentals but also on market sentiment.
Mark Mobius, co-founder, Mobius Capital Partners, tells Puneet Wadhwa that investors should concentrate more on "value" rather than momentum, and on good small- and medium-sized companies rather than large-caps.
'We want to make sure we stay in India and we have very high hopes from India,' says Mark Mobius.
Mark Mobius, executive chairman, Templeton Emerging Markets Group, is positive on India and believes the Indian economy is on a strong footing
Templeton, which holds a 9 per cent stake in Taro, said that Sun's offer of $7.75 a share is too low and unjust to the minority shareholders of Taro.
We expect the Indian equity market to continue attracting interest from local as well as foreign investors. This is because India's economy is expected to continue to record sustained economic growth.
Emerging markets guru Mark Mobius believes the Indian market is no longer cheap but the country has been enjoying a premium over peers due to its growth prospects. In an interview with Business Standard, the executive chairman of Templeton Emerging Markets Group says India's relatively strong fundamentals and accumulation of foreign exchange reserves put it in a much stronger position to weather external shocks.
Hence, to conclude, a combination of factors like unwanted pessimism and greater availability of money is the driving force behind the current stock market rally. Will the markets once again touch the lows of last year? Unlikely. Will they rise even higher? Well, only time will tell.
At these high levels, remaining invested in the market is the best bet for small investors, says Ramesh Shrichand Damani.
Most of these stories are real, but in the world there have been long periods of time when these have not worked.
Benchmark indices plunge 4.7% in the first full week of 2016.
'As the interest rates rise, people are going to say why should I be taking big risks when I can get 4 to 5 per cent in a bank account.' 'So, I think you have to change your thinking.' 'You need to look at the balance sheet, look at dividends.' 'These issues that have been ignored.'
'Overall, the Indian economy is doing well.' 'Our economic fundamentals are strong and the early signs of recovery are sustainable.' 'This is positive for the market in the long run.'
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