 "Investor appetite for Indian markets is back: Mobius")
Investment guru and executive chairman of Templeton Emerging Markets Group, Mark Mobius, is bullish on the Indian markets, which have outperformed its global peers, posting almost 11 percent gains in January.
In an interview with CNBC-TV18, Mobius says the bear market of last year was actually a correction in the ongoing bull market, which was caused by too many IPOs (initial public offers) in 2010. “As you know, it was about $540 billion of new emerging markets IPOs,” said Mobius. However, now that the correction phase is over, more foreign money is being pumped into overall funds - a sign that investor appetite is back.
Surprisingly, the foreign money being pumped into emerging markets is not from Europe or the US, but from Asia and Latin America because their own pension funds are running out of options in their domestic markets, said Mobius.
He added that there are tremendous opportunities in emerging markets because of the very low debt-to-GDP levels, high foreign reserves and rapid growth.
On the Supreme Court ruling which cancelled 122 2G licences, Mobius said the move is a positive as further reforms in the telecom sector will only aid consolidation and improve sector efficiency.
Watch the fullinterview on CNBC TV 18 :
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