Veteran investor Mark Mobius believes that the Indian economy has shown great resilience through the pandemic, which will attract greater investments into the country. The emerging markets specialist also added that the stock markets may continue to rise as long as cryptocurrencies continue to rise.
Speaking at The Colloquium by UTI AMC, Mobius, the founder of Mobius Capital, said that the Indian economy had shown resilience because of the reforms brought forward by Prime Minister Narendra Modi. He was optimistic towards the equity markets since countries are heading into a very high period of growth. Given that most economies around the world including emerging markets shrunk in 2020, economic data this year will look good compared to the previous year which is why the markets have risen, according to Mobius.
The sectors that stand out the most with respect to India are consumer and technology. He stated that in India, the consumer market is going to do well and anything related to technology and consumerism would be quite interesting.
He said, “India is probably a great example because the reforms introduced by Modi are having a big positive impact on the economy and that will drive in more investments.” Drawing comparisons, he added that while China is going to become more dependent on the growth in the domestic economy, India will become an important manufacturing centre with both exports and manufacturing becoming more significant.
The emerging markets guru expressed his surprise towards the rise in cryptocurrency prices and stated that a fall in the prices of cryptocurrencies could have an impact on the markets globally.
“As long as the cryptocurrencies continue to rise, the stock market will continue to rise. Let’s hope that the cryptocurrencies, especially bitcoin, does not crash because if it does then it will have an impact on markets globally,” he said.
Mobius is of the view that inventors need to study as much as they can and not to get carried away with a fad when it comes to investing. He also advised investors to rely on their own judgement and to be patient.