Veteran investor Mark Mobius is placing his bets on small-cap stocks in India.
While the Indian market may be expensive at the moment, small-cap stocks are still a good investment, Mark Mobius, executive chairman of Templeton Emerging Markets Group, told Bloomberg TV in an interview.
The big caps are expensive, the small caps are interesting.Mark Mobius, Executive Chairman, Templeton Emerging Markets Group
The benchmark NSE Nifty 50 Index is currently trading at 22.2 times its earnings and at a small premium to its five-year average of 20.4.
However, given the large number of companies in the market, there are still particular small-cap stocks that can give good returns, Mobius said.
On the impact of Goods and Service Tax (GST) Bill, he said that the singular tax rate system will have a “big, big impact” on many companies, particularly the smaller ones. As for the upcoming monetary policy for the day, he expects the Reserve Bank of India will try to keep the growth momentum going at 7 percent.
“Modi will give instructions to the RBI, even though it's suppose to be independent, that you better keep this ball running,” he said laughing.
Also Read: Mark Mobius' Favoured Themes In India: Quick-Service Restaurants, Bollywood
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