Veteran investor Mark Mobius seems to have pinned his hopes on the Indian market. In an interview with Bloomberg Television, he said, “India is on a 50-year rally.”
The emerging markets investor is betting big on the Indian market to balance sliding returns from his investments in the Chinese market, Bloomberg reported.
“India is maybe where China used to be 10 years ago," he was quoted as saying. The Indian market has been in a bull run recently. The Sensex index touched the 60,000 mark in September 2021, only about eight-nine months after it touched the 50,000 mark in January. This was the quickest period in which the Sensex grew by 10,000 points in the history of the stock market.
In an interview with the Economic Times in September this year, Mobius had expressed his confidence in the Indian market and concern about the Chinese market. “The Indian market looks very good because of the changes that are taking place in the economy generally. Most important of all is the fall of the Chinese market as a result of the moves by the government and the ongoing tension with the US,” he told the Economic Times.
India is among emerging markets that have not been on a par with developed nations, and the losses in the Chinese market are being seen as a reason for the drag-down, according to analysts.
“People say emerging markets look bad because China is dragging down the index, but they have to look at other areas such as India that are going up," said Mobius, founder of Mobius Capital Partners LLP.
According to Bloomberg, Mobius Emerging Markets Fund has a joined 45% of its portfolio allotted to India and Taiwan, with tech hardware and software the largest holdings in these markets.
Mobius’ positive view about India comes amid many brokerage houses and analysts sounding a cautious note given the recent rally in the stock market.
It may be noted that Mobius is not high on cryptocurrencies, which have caught the fancy of many investors despite the volatility and risks seen therein. He has expressed this in several interviews and statements to the media and other organisations earlier.
