Mark Mobius: Good opportunity to buy India stocks despite COVID crisis; cryptocurrency a 'very risky area'

Mark Mobius said it's "quite amazing" that the COVID-19 crisis has not affected the Indian stock market much.

May 19, 2021 / 11:58 AM IST
Mark Mobius (Source: CNBC)

Mark Mobius (Source: CNBC)

Emerging markets investor Mark Mobius said he likes Indian stocks, despite the ongoing deadly second wave of COVID-19 in the country.

Mobius told CNBC it's "quite amazing" that the COVID-19 crisis has not affected the Indian stock market much.

"But generally speaking, we know that this is going to pass, that people will get vaccinated and the (Covid case) numbers will come down," Mobius told the news channel.

Given these factors, the veteran investor said "it's probably a good opportunity to buy".

Also read: Sensex could hit 61,000 by December in a bull case scenario: Morgan Stanley

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As of the close on May 18, the benchmark index Nifty50 has risen 8.1 percent this year, according to a calculation done by CNBC. On Tuesday, the Sensex closed 1.24 percent higher at 50,193.33, and the Nifty ended 1.24 percent higher at 15,108.10.

Among Indian equities, Mobius said he likes shares of software and healthcare companies, as well as firms providing equipment and materials to infrastructure projects.

Sharing his views on commodities, Mobius said he continues to like physical gold and is "not that excited" about the oil sector.

"I think we're probably where we should be, $60-$70 a barrel so we're not going to see an incredible boom in oil companies," he told CNBC.

Mobius called cryptocurrency a "very risky area". He said that it is difficult to predict the direction of cryptocurrency prices and questioned how easy it is to convert them into "real money".

He also disagreed with the idea that bitcoin, the world's largest cryptocurrency, could replace gold as a hedge against inflation.

"I can't have a crypto ring whereas I can have a gold ring —that’s the real difference," he said.
Moneycontrol News
first published: May 19, 2021 11:58 am

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