Veteran investor Mark Mobius says emerging markets like India are poised to benefit as foreign investors pull back from the US, but warns that India's red tape might be costing it dearly.
“The bureaucracy is incredible,” Mobius said, pointing to the three-month delay in approvals for his new India-dedicated fund. “India has literally money in the bank and yet can't draw it. They've got to make it easier for people to open accounts and put money in.”
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
While Mobius remains structurally bullish on Indian equities, a large part of his fund's cash pile remains parked on the sidelines due to procedural delays in receiving approvals from Indian regulators. That's added to his overall caution globally, with 95% of the fund currently in cash.
(Image source: Wikipedia)
The long-time emerging markets bull says equities remain the best asset class globally—even now. “This is where the growth will be,” he said. But he admits that in current conditions, with geopolitical tensions and weak regulatory visibility, “cash is king”. That, he said, justifies holding off for now until the investment environment becomes clearer—especially in India, where the opportunity exists but the access does not.
Mobius said he continues to favour Indian equities despite recent India-Pakistan tensions, calling it a “long-standing issue” with no real market impact. His top picks include domestic consumption plays and housing. He also sees a “big move” coming in electronics exports, as global companies diversify away from China. “With restrictions on flows from China, I believe electronic exports will boom,” he said.
Globally, Mobius sees at least six more months of uncertainty. While US interest rate cuts may support equities, the strength of the dollar and rising volatility are pushing investors to reconsider the US as a safe haven. “People will be hesitant to put money in the US, at least temporarily.”
Asked whether he still considers telecom a viable sector in India, Mobius said that, “Competition is so intense…we're very cautious on all these telecom companies.”
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.