BackIndia has terrific EM investment opportunities, doesn't make sense to reduce weightage: Mark Mobius
Over the long term, India’s macro factors are more favorable because of demographics, as well as specific companies’ growth prospects, Mobius told Bloomberg earlier this year.
PremiumVeteran investor Mark Mobius of Mobius Capital Partners' has said that India is the place to be when it comes to emerging markets (EM) investing. According to a report by CNBC-TV18, Mobius said that it does not make sense to reduce weightage on India and that the country has terrific investment opportunities.
Mobius, who manages nearly $300 million in assets under management across various countries, said that global investors who intend to invest in emerging markets, have India as the main option.
The veteran EM investor told the news channel that his exposure to India is currently at 20 per cent, which is at least double of the 5-10 per cent exposure he historically had. Mobius further highlighted that India will be affected with the macro economic changes taking place globally. Global markets, including the US, have not taken the news of the US Federal Reserve projecting one more rate hike for this cycle well, according to the report.
However, Mobius believes that interest rate cycle is nearing a peak and that the Fed is unlikely to raise interest rates. India's market analysts have also pointed out the impact of record-high US bond yields and stronger US dollar on Indian equities. These along with high crude oil prices have triggered the selling by foreign investors in Indian stocks since August 2023 - that continues till date.
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Another headwind for Indian equities has been crude oil prices, which are currently at $95 per barrel, trading at multi-month highs. Mobius believes that similar to the US interest rates, the crude oil prices are also near their peak as more people are switching to crude oil alternatives.
‘’Over the long term, India’s macro factors are more favorable because of demographics, as well as specific companies’ growth prospects. Picking stocks in India is all about technology and digitization. We like APL Apollo Tubes Ltd., whose steel structures are used to construct buildings, and Metropolis Healthcare Ltd., a medical testing firm,'' Mobius told Bloomberg earlier this year on the Asia boom.
‘’We also like software company Persistent Systems Ltd. and digital mapping company CE Info Systems Ltd., as well as Dreamfolks Services Ltd., which offers services at airports. China will not achieve the high growth of the past, and thus opportunities will be limited. Nevertheless, it’s an enormous market, and there will certainly be pockets of opportunities,'' he added.
Stock Markets Today
In September, Indian markets have seen both highs and lows with the Nifty 50 index crossed the mark of 20,000 before entering a phase of correction. The benchmark index is up nearly 10 per cent for the year and is set to post its eighth straight year of positive returns. Nifty 50 has also emerged as the top performing index in September globally, according to analysts.
Meanwhile, domestic equity benchmark Sensex rebounded from early lows to settle higher by 173 points on Wednesday following buying in Reliance Industries, Larsen & Toubro and ITC and positive trends in Asian and European markets.
The 30-share BSE Sensex rose by 173.22 points or 0.26 per cent to settle at 66,118.69 with 20 of its components ending in the green and 10 closing lower.
The index opened lower and fell further to a low of 65,549.96 in morning trade. However, buying in Reliance, L&T, Infosys and Maruti helped it recover losses. Later, it jumped 226.8 points or 0.34 per cent to a high of 66,172.27.
The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45. It moved between a low of 19,554 and a high of 19,730.70 in day trading.
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