India is going to Inconceivable in 2019 in the Investment Market

Mark Mobius says the best market to invest in 2019 is India due to slow down in china
India is going to Inconceivable in 2019 in the Investment Market

Investment guru Mark Mobius has started his second innings with Mobius Capital Partners.

India is going to be on the top in the market to invest in the next year, said Mark Mobius, founding partner of Mobius Capital Partners, adding that the country can stand out due to the slowdown in China. Now there is a chance for India to place them in the market where everyone wants to.

 "I believe that India could decouple and move forward … with China slowing down, India has a good chance to standout. I like the smaller banks, the Non-Banking Financial Companies (NBFCs) and the medium and small-sized banks.

On oil prices coming down, he said, "India looks very cheap and with the Brent down, this is very bullish for India."

In the Morningstar Investment conference, Mobius explains why he wants to put money in India, why India is a special case and doesn't need rate hikes to contain inflation and how he is looking for companies that other than valuation, have strong balance sheets, focus on ESG factors and are paying dividends. 

The US Federal Reserve increased interest rates by 25 basis points while lowering the median forecast for rate hikes in 2019 to two hikes from three earlier.

What interests us is the consumer side because with this loan forgiveness, of course, you are going to see consumption skyrocket and you are going to see many opportunities in the consumer area … India is right at the top – it is the top market to invest into in the year 2019 – which is why I am here now," said Mobius.

One basis point is hundredth of a percentage point.

"The Fed is going to continue with this disposal of all these assets that they had over these years. So we can expect further rate hikes but it will be at a much slower pace in my view," he said.

Talking about farmers loan waiver in India, Mobius said, "What is concerning to us is the political talk about the farmers loan forgiveness – of course it is very good for the farmers for the short-term but for the long-term, it is not a very good move because it means that you are not looking at the basic problems which are infrastructure and other aspects which will help the farmers in the long run."

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