Mark Mobius sees Sensex reaching 1 lakh by year-end
Mark Mobius, the head honcho at Mobius Capital Partners LLP and a big name in the emerging market investment world, believes that the Sensex could hit the one lakh mark by the end of this year. In a chat with CNBC-TV18, he shared his optimism about the current rally in Indian stocks. He also pointed out that potential regulatory actions from SEBI could make a big difference in this record-setting rally.
Mobius advises funds to allocate 50% investments to India
The investment guru thinks that funds diving into emerging markets should park 50% of their cash in India. For the rest, he suggests splitting it between China and Taiwan (25%) and Vietnam, Turkey, Brazil, South Korea, and Thailand (25%). Why? Well, Mobius is pretty bullish on Indian stocks, thanks to the strong housing demand from the middle and lower-income folks in India.
Mobius sees potential for new bull market in China
Mobius is also optimistic about a potential 'new bull market' in China, thanks to some recent stimulus actions by President Xi Jinping aimed at supporting small businesses. He thinks these moves could send China's benchmark indices soaring, which would be good news not just for India but for other Asian economies, too. However, he also warned that there could be a pullback because of how well the Chinese market has been doing compared to others.
Mobius's bullish outlook on Indian real estate and commodities
Besides stocks, Mobius is all in on Indian real estate and commodities too. He believes that the strong demand for housing among middle and lower-income groups is a great sign for the real estate scene. He's also got his eyes on India's semiconductor industry, especially with all the recent project launches and big future investments from global players.
Mobius's view on India Inc's earnings potential and market risks
Mobius is pretty upbeat about the earnings potential of Indian companies. He pointed out that as those earnings go up, valuations might not look so steep, which means we could see some lower future P/E ratios for India Inc. But he also had a word of caution for investors. "I have always said, there will be corrections along the way in India that can be 5-10-15%, so expect that, but be ready to buy when it happens," said Mobius.
