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    Mark Mobius says 5% growth good for India's size, bullish on services & consumption

    Synopsis

    Mobius said he never expected the country to register such a strong economic growth.

    Mark-Mobius-BCCL-1200
    Mobius pointed that globally a few countries were seeing negative interest rates, and India was also seeing declining interest rates.
    MUMBAI: Emerging markets guru Mark Mobius on Monday said that 5 per cent is a good growth number for an economy like India, which is attracting interest from global investors.

    Mobius, who first started investing in India in the late 1980s, said he never expected the country to register such a strong economic growth.

    “A lot of money is now searching for yields in China and India. This explains why markets are rising even as the economy is slowing down,” Founding Partner of Mobius Capital Partners said at Times Network's India Economic Conclave.

    India’s economic growth slipped to hit an over six-year low of 4.5 per cent in the July-September quarter. The previous low was recorded at 4.3 per cent in the January-March period of 2012-13.

    Even as economic growth languished in Asia's third-largest economy, the foreign fund inflows have continued to be robust, driving the benchmark equity indices to record high levels.
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    "When I first started investing In India, it was chaotic. I didn't expect this kind of economic growth to come in. About eight years ago, I saw an incredible opportunity to grow," he said.

    Why Mark Mobius is unperturbed by India slowdown

    Emerging markets guru Mark Mobius is confident of the prospects in the Indian market and his fund has kept its India exposure 'high'. He says what's driving his conviction on Indian stocks is the belief on Prime Minister Narendra Modi's ability to turn around the lean period that the economy has been facing. The legendary investor shared his outlook for Indian equities and gold and discussed some investment ideas in an interview with Saloni Goel of ETMarkets.com on the sidelines of ETMGS, 2019. Excerpts


    Mobius pointed that globally a few countries were seeing negative interest rates, and India was also seeing declining interest rates.

    This regime of declining interest rates has led to equities being attractive as an asset class, he said.

    Discussing investable opportunities in India, Mobius said he finds value in the services sector. “Future is in the services sector. The increase in the sector is not properly captured in Indian GDP data and I see value in the services sector in India.”

    Mobius was also bullish on the consumption theme. “We will buy consumption stocks. Market is looking at growth prospects, that is where you want to go.”

    When asked, which stocks he would steer clear of, the expert said he would never buy companies that don’t have good corporate governance.

    For weak performance in index benchmarks, Mobius blamed heavily weightage of financials. “If they were not, market would have performed better,” he said.

    Talking at ETMarkets Global Summit last month, Mobius had said that he was ready to bet on bombed-out NBFC and infra stocks in India.

    “Companies with the highest yields could be safe bets,” he had said at the event.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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