For investors who got a setback from the steep correction on the last few trading day of the August 2013, here is some reprieve. It seems not every investor is heading for the door. Certainly not the ones with their eyes fixed on the sound fundamentals of select Indian companies. And Mark Mobius is one of them. The emerging markets fund manager at Franklin Templeton Investments is not willing to call it quits yet. On the contrary, in an interview to CNBC, Mr Mobius has cited his willingness to stay put in India.
Despite the state of economy and the rupee, the fund manager has not lost hope in Indian equities. Mobius, in fact, believes that markets are overreacting to QE tapering talks. Volatility in Indian markets, as with most markets globally, is here to stay. However, there is no reason for investors to quit stock markets. Having said that, it has never been more pertinent to be extremely selective about the stocks in one's portfolio.
Mobius himself has acknowledged that he is keeping a close watch on India's economic variables. He does believe that valuations already discount a possible downgrade in India ratings. However, one cannot help being careful about an economy where the government has not delivered for too long. What is also enthusing is Mobius' assurance about foreign investors wanting to re-enter Indian markets. Few reforms and political will could make all the difference.
Despite the state of economy and the rupee, the fund manager has not lost hope in Indian equities. Mobius, in fact, believes that markets are overreacting to QE tapering talks. Volatility in Indian markets, as with most markets globally, is here to stay. However, there is no reason for investors to quit stock markets. Having said that, it has never been more pertinent to be extremely selective about the stocks in one's portfolio.
Mobius himself has acknowledged that he is keeping a close watch on India's economic variables. He does believe that valuations already discount a possible downgrade in India ratings. However, one cannot help being careful about an economy where the government has not delivered for too long. What is also enthusing is Mobius' assurance about foreign investors wanting to re-enter Indian markets. Few reforms and political will could make all the difference.
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