Mark Mobius says weak Rupee helpful for export plays, Trump 2.0 to benefit India

"India remains one of the best place to invest given the growth rate and reforms underway, and simply because India offers value, with very high Return of Capital," said Mark Mobius.

Veteran emerging market investor Mark Mobius believes India's export-oriented companies will benefit from a weakening Rupee as well as the incoming Trump administration, as the country stands to benefit from being the natural choice for manufacturing, after China, given the reforms that have been taking place.

In conversation with CNBC-TV18, Mark Mobius of Mobius Emerging Markets Fund said India's exports are set to rise at it seizes more opportunities in the global trade and business. "We are on the cusp of more exports coming out of India, not only in software, but also in manufacturing," Mobius said.

The depreciation in Rupee is expected to continue due to strength in dollar and India's wider trade deficit, with the currency testing 85.80. Mobius believes that Indian companies that have a dollar income component will continue to do well. "Companies that are exporting, like Infosys, will be more competitive due to the weakening Rupee," he said on the channel.

He added that concerns around valuations should be seen from the prism of growth potential too, and investors should not be unduly worried about the fact that many of these stocks have gone up too far, or too soon. They may continue to rise, if earnings go in that direction, Mobius said. "If a country is growing at 7-8% per annum, good companies will be growing at double the rate. So, an increase in price by 20% in these stocks is more than accommodated by the increase in value," said Mobius.

His bullishness on India also stem from his belief that the incoming Trump administration will not be favouring the Chinese market for imports. "India remains one of the best place to invest given the growth rate and reforms underway, and simply because India offers value, with very high Return of Capital," said Mark Mobius, adding, "I am contining to be optimistic about India, generally."

His expectation is that President-elect will also be cutting down on a lot of paper work for doing business in America. "This will be very good for foreign companies as well," said Mobius, adding that the country will benefit as it is the 'natural choice' for manufacturing after China, and given the extent of reforms that are currently taking place in India.

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"My personal desire is to be 50% invested in India," said the 88-year old emerging market veteran.

Within the consumption space too, Mobius said he would look at export-oriented companies, given the currency situation and India's gradually increasing competitiveness against Chinese exporters. He also advised investors to not write off consumption plays, including housing and FMCG, given India's steadily rising per capita income.

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Trump, during the election campaign last year, had said that he would recommend students graduating from US colleges be given green card automatically. This recommendation may be implemented by Trump, said Mark Mobius. Trump realises, In Mobius' view, that he needs to hold back some of these talents who can become 'capable professionals'. Billionaire Elon Musk and fellow Republican Vivek Ramaswamy, who have been picked by Trump to lead the Department of Government Efficiency (DOGE) too have backed workers on H-1B visas, arguing tech companies depend on them. Mobius said the experience that these tech professionals will acquire in US will benefit India too when they bring it back into the country.

Mobius said he would also like to look at stocks that have 'orientation' towards the semiconductor industry, as India will eventunally become a lot more competitive not only in low-end IT, but also in high-end semiconductor chip manufacturing, however, he said he is yet to isolate beneficieries and is still assessing the space.

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