Mobius finds Indian consumer market bigger than China

Mark Mobius, Executive Chairman at Templeton Emerging Markets in an interview with CNBC-TV18 said that the Indian stock market is very attractive right now and he would rather bet on the consumer stocks here than in China.

He added that the sharp sell-off in emerging markets equities since late July is only a temporary downtrend and Asian stocks will bounce back.

But, Mobius says that once the economic mayhem in Europe is over, there is a risk of hot money pouring back into the region, similar to what happened in 2008 during recent the global financial crisis.

He said that once the turmoil in Europe is over, people are going to put money back in the region and the crisis-hit economies will see massive injection of money.

Talking about China, he said pent up demand in the country will lead to continued level of high growth. However, while comparing India to China, Mobius remained bullish on Indian stocks and said " consumer market in India will be bigger than the Chinese market because of the structure.

He added that now Indian stocks have come down to comfortable levels and are really ‘attractive’. " We will continue to buy in India.. and commodity and consumer stocks are my picks."

Watch video: Buy India’s commodity, consumer picks: Mobius