Mark Mobius, Partner, Mobius Capital Partners, believes that despite recent volatility, the Indian market is still very strong and remains attractive for the long run.
"If you look at it on a five-year basis, the Indian market is still very strong and is still staying up. At the end of the day, it will do well," Mobius said in an interview with ET Now.
He said he was a long-term bull in India.
"India is going to do very well going forward. You are going to have market fluctuations, you are going to have situations like Adani but the country itself is going to go from strength to strength," said Mobius.
Mobius said the slowdown in the Indian economy will be the biggest worrying factor for the market. He said the Indian market will be in trouble if people detest reforms.
"The biggest worrying factor would be a departure or slowdown of the transformation of the economy that Modi is trying to institute," Mobius told ET Now.
"Having each and every Indian using technology to better their lives, is going to be the productivity driver for the Indian market. At the end of the day, that is what I would be scared about - if people say, ‘no we do not want the technology, we do not want the reforms’, then India will be in trouble," said Mobius.
Talking about the FII outflow from India, Mobius said it is a natural movement in the market.
"You had a downturn and then people got a little scared as a result of the recent problems that you have had with a major company. But otherwise, things are fine," he said.
Mobius said he stayed away from the Adani Enterprises' FPO because of the huge debt on the Adani Group.
"The thing that scared us about the Adani companies, of course, is the debt. So, at the end of the day, those foreign investors who were forced to go into these big market cap stocks got burnt and, of course, they got scared. But at the end of the day, the outlook for India still looks excellent," said Mobius.
Mobius said he is expanding the tech portfolio, particularly in the software area in India as he believes the country will be a major producer of hardware, technology hardware, chips, etc. in the long term.
He also believes that India will become a manufacturing hub.
"India is already a major textile manufacturer. But going forward, it is going to be transformed more into technology," he told ET Now.
Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
