Valuations need to correct further in India: Mark Mobius

Upbeat economic news from the United States and a stronger euro-zone bailout fund lifted investor sentiment on Thursday, supporting most stock indexes and the euro. However, the market reaction, in general, was a bit lukewarm.

Not surprisingly though, said Mark Mobius, executive chairman of Templeton Emerging Markets. "Passing the ruling in German Parliament is only one step. Implementation is the next step and of course that will take time," he believed. But he acknowledged that the German nod for European Financial Stability Facility (EFSF) expansion is the right step towards solving the EU crisis.   Mobius feels global markets are not necessarily moving rationally and that volatility is here to stay at the moment. "The fundamentals are still excellent for emerging markets. The growth is good and I think we will pull through this very nicely," a confident Mobius asserted. Giving his views on Indian markets, Mobius said, valuations need to correct further in India. "What we need in India is more choices