Indian markets stand out as compared to other emerging markets: Mark Mobius
Mark Mobius, Fund manager at Franklin Templeton Investments believes Indian markets to outperform as compared to other major emerging markets.
Indian markets have been bullish and the experts are eyeing Sensex, Nifty to touch new-highs in next few years.
Mark Mobius of Franklin Templeton Investments that said Indian markets will continue to do well in long term.
"The Sensex has been doing extremely well. The economy is doing very well. Interest rates are coming down. Whenever you have a bull market, you are going to have bumps along the way but the Indian situation looks very very positive," Mobius said in an interview to Zee Business.
With positive outlook on economy, Mobius said there is "room for more aggressive rate cuts by Reserve Bank of India in view of the very low, falling inflation you are seeing in India".
In a separate phone call, according to Mint report, he mentioned that NSE Nifty is likely to double from the current 10,000-level within next three to four years. And, Indian currency, Rupee to appreciate further to around Rs 60 per dollar by the end of the year.
Indian Rupee already appreciated to Rs 63 per dollar last week.
This estimate is similar to Morgan Stanley's analyst Ridham Desai, who had said Nifty can touch 30,000-mark in five years.
Further, Mobius, who is very bullish on Indian markets as compared to other emerging markets, said Indian markets stands out as compared to other major emerging markets because of "incredible" economic growth which the country is experiencing currently.
Adding to it, Mobius pointed out that potential growth is even higher because India is lagging on infrastructure develepment and capital investment. If there is a pick up in these areas, the country is capable of growing at even a better rate.
"The government has to move more aggressively on privatisation of state-owned enterprises because one of the problems that we are facing in India is the lack of stocks to buy because a lot of valuations of major companies have gone up. If you look at the average P/E, average price-to-book, Indian stocks tend to be higher than the emerging market average and it is probably one of the reasons why the Indian market has underperformed the general emerging market index by a small amount."
When asked about which sector in India likely to pick up, Modius said that IT development area is of great interest because there are many Indian entrepreneurs globally, in the US, Silicon Valley and elsewhere who have made tremendous strides.
However, he mentioned that despite headwinds faced by IT companies from US like Tata Consultancy Services and Infosys, these stocks will pick up again because these companies have become "global" and not dependent only on the US.
WATCH FULL INTERVIEW WITH MARK MOBIUS HERE