Speaking at the Morningstar InvestmentConference, Mobius highlighted India as the second-largest entity in their portfolio, emphasizing their positive outlook on the Indian economy and companies.“We are very positive on India…India is the second largest in our portfolio, and we have made a lot of money in the last two years. So, we are very positive on the Indian economy and companies,” ET quoted Mobius as saying.
Even as Mobius sees bright prospects of Sensex touching the 1 lakh mark, he acknowledged the likelihood of intermittent corrections along the way. He viewed these as opportunities to purchase quality stocks. He stated, “I love when markets go down because it gives an opportunity to buy cheaply.”
While some pockets of the Indian market have witnessed expensive valuations following a recent rally, Mobius remains undeterred, the financial daily report said. He advised investors to consider valuations based on 1-year, 3-year, or 5-year earnings, rather than solely focusing on current P/E valuations.
In 2023, the Sensex has already gained approximately 5% and reached a record high of 67,927.23 points in September.
During correction periods, Mobius recommends investing in companies with high return on capital, strong corporate governance, lower debt, and lower competitive intensity.
Additionally, he highlighted India’s promising economic growth prospects, citing its diverse strengths and the significant role played by a tech-savvy young population. “…the future of India looks very exciting,” he said.
Mobius also emphasized his investment philosophy, giving importance to the ESGC (environment, social, governance, culture) model when selecting companies for investment.