"One should be looking at consumption stocks now like FMCG, autos because of the middle class package which has come about," said Mark Mobius.
Mark Mobius, Founding Partner of Mobius Capital Partners, said that the Budget announced by finance minister Piyush Goyal was "excellent" for the stock market.
"I think this Budget is excellent for the stock market, I think it is a great package for us because we have been focusing on consumer stocks and this is a great boon for consumer companies. So, I think it is an excellent Budget," said Mobius.
"One should be looking at consumption stocks now like FMCG, autos because of the middle class package which has come about. All these stocks should do well. Our approach to the market from the beginning has been to look at consumption stocks in India. We believe that even without this package, the consumer income is increasing in India because of the economic growth. So, this has held on to that and it is very beneficial," he added.
Goyal, while announcing the interim Budget 2019, said that the government has revised fiscal deficit target for 2018-19 to 3.4 percent from the earlier 3.3 percent.
"The nice thing about it is that 3.4 percent fiscal deficit is not that bad. Of course we have to watch the currency very carefully because on one hand they may be giving us very good consumption patterns but on the other hand you may see a weakening of the currency, so we have to look at what the currency is doing as well," said Mobius on the government revising fiscal deficit target.Source: CNBC-TV18