Mark Mobius, founding partner at Mobius Capital Partners and veteran investor in emerging markets believes that India is emerging as “something very exciting” due to technology and government policy.
Speaking on CNBC’s Squawk Box Asia segment on June 21, Mobius advised investors “looking to get in on this opportunity” to gain exposure through the Indian stock markets.
“Right now, we’re focusing more and more on India. It is emerging as something very exciting, thanks in part to technology and government policies,” said Mobius.
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On his experience in the market, Mobius said he calls the country ‘United States of India’ because each Indian state is different from the other, adding that this is a positive “that’s creating an incredible growth opportunity”.
Advising prospective investors, Mobius suggested they gain exposure though the Indian stock markets with particular focus on technology.
“There are a number of world-class, Indian companies that are in the software business — as you know, Tata’s global, they’re all over the world,” Mobius noted, adding that many other Indian companies prominent in the global software space are now also entering the hardware market.
The Nifty 50 and Sensex both rose 20 percent each in 2021, cashing big gains over the past two years. The recent recession has however pulled both indices as investors braced for recession and central banks tighten monetary policy to combat inflation.
Besides India, Mobius was also keen on Taiwan, which he described as having the best parts of Chinese culture, an open society and incredible creativity. “A lot of the software that goes into chips is created in Taiwan, and that’s where we’re focusing on,” he added.
This is not the first time Mobius has expressed bullish sentiments towards the Indian markets.
Speaking to CNBC-TV18 on May 24, Mobius acknowledged that while there may be more pain in store, he believes the Indian market will outperform its peers.
"(One should) invest in Indian companies, which have minimal debt and strong pricing power," he advised.
Prior to that in February, Mobius said that he remains invested in Indian equities given that the country’s growth prospects are good. Noting that “we are climbing a wall of worry in the market”, he also advised investors to stick to companies with strong earnings prospects.
On the cryptocurrency bear run, Mobius had said he believes it could be beneficial for equities as retail investors seek other avenues for returns amid a slump in the digital asset’s fortunes.
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