India Will Remain Top Choice For Global Funds Despite External Shock, Says Mark Mobius
The yen carry trade that triggered the global rout earlier this week is pretty much played out, according to Mobius.
India will be the favourite destination for overseas flows despite any near-term shocks, as "no country will equal the growth seen in ndia," a according to veteran investor Mark Mobius.
Going forward, China can report better growth. However, "growth is in India and that is where we want to be," the co-founder of Mobius Capital Partners told NDTV Profit. It will be very difficult for other emerging markets to compete with India, despite Taiwan and Korea being attractive, as the growth rate is not high.
The market veteran is bullish in the domestic raw materials companies along with the fast-moving consumer space, given the increase in rural spending. "I will now put money into raw materials, companies that produce raw materials for infrastructure and industry generally."
India is the leader globally in the field of software and a lot of growth is still intact, Mobius said. "But I'm more interested in hardware and I believe India is going to be ramping up hardware that includes semiconductors and related industries."
During the recent turmoil in global markets, India performed better than the US and that says a lot about the increased growth rate of India and its dynamic economy, he said.
Most Of Yen Carry Trade Is Played Out
The yen carry trade that triggered the global rout earlier this week is pretty much played out, according to Mobius. "The leveraging is now being unwound and it's pretty much over by this stage."
Going forward, the Asian markets will move sideways rather than being volatile, with about 5–10% moves at least in the short term, he said.
The yen carry trade was the trigger for a correction in the global market, particularly in the US. "In addition to that, there is uncertainty about the war in Ukraine, the situation with China and Taiwan and the situation with Israel and the Middle East."
