We are definitely in a new bull market, like telecom & technology sector: Mark Mobius

Emerging markets investor Mark Mobius believes that a new bull market has begun adding that India and China are on the top of his pecking order.

"We are definitely in a new bull market. Bull markets always have to climb a wall of worry, every day brings a new worry," said Mark Mobius, founder of Mobius Capital Partners in an interview to CNBC-TV18.

"India's recovery from the bottom is a good performance. Recovery possibilities are much greater for emerging economies."

Globally, all markets have rallied sharply in the last three weeks amid optimism over re-opening of the economies. India itself rallied more than 11 percent in the last three weeks and so far has recovered 30 percent from March lows. Meanwhile, Dow Jones bounced back with 38 percent gains, but China's Shanghai Composite recovered just 9 percent from March lows.

Mobius also said that political dissension could be in the offing as people are fed up of the lockdowns.

Related stories

Mark Mobius

Founder|Mobius Capital Partners LLP

• 
  Mark Mobius sees India in middle of the bull market; Bitcoin in a bubble
• 
  Investors who bet on Trump boom are bailing, says global investment guru Mark Mobius
• 
  Smallcap stocks in emerging markets offer attractive prospects for active managers: Mark Mobius

"Governments will have a tough time imposing harsh lockdowns henceforth. We could see real political dissension if fresh lockdowns are imposed," he said.

India has been in a nationwide lockdown since March 25 but now the lockdown is restricted to containment zones only. Globally too the countries are re-opening, albeit with due care and social distancing norms.

Mobius said despite a higher rate of death, the economies shall continue to do better. He expects India to see economic recovery and expects people to get back to work soon.

"India will see a very big earnings hit this year. The market is predicting a V-shaped recovery, it will show in economic numbers next year only," he said.

Among sectors, Mark Mobius expects healthcare and infrastructure will do well.

"We like companies related to telecom and technology. In consumer space, we like companies that are using the internet for sales," he said.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.