The founder of Mobius Capital Partners is bullish about emerging markets, particularly India, despite equities going through a turbulent phase and a tough competition poised by debt
Mark Mobius, founder, Mobius Capital Partners
Photo: Bajirao Pawar For Forbes India
As factors such as the geopolitical crisis and high yields in the US are taking the wind out of equities, the confidence of Mark Mobius, founder, Mobius Capital Partners, on equities remains unwavering. He feels that India is the market to be in—to reap higher return on capital—as the country is a land of opportunities and innovation, with the potential to play a pivotal role in the global financial arena.
Taking the current downturn in equities not as a source of concern but rather an opportunity, Mobius has increased his exposure to Indian equities and is confident to raise his stakes higher despite the election-led uncertainties. He sees the 30-share index Sensex at 100,000 within five years with a firm belief that the newly elected government will continue with reforms and business-friendly reforms.
“If you look at the Indian situation from a global perspective, India is in a pretty good spot. I think India is going to be in good position,” he says.
According to the seasoned investor, even as inflation has been a nagging issue worldwide, it is another good reason to invest in stocks because stocks will adjust for inflation, which is important for investments. He feels the withdrawal of foreign institutional money from Indian equities is likely to be temporary. Edited excerpts from an interview:
Q. You have been a big fan of India and emerging markets. But we are in the middle of a crisis-like situation with war, commodity inflation and rising interest rates. How do you position yourself in India?