Veteran emerging markets investor Mark Mobius said that the Sensex could hit the 1 lakh mark in the next five years. The chairman of Mobius Emerging Opportunities Fund told CNBC-TV18, “The Sensex will hit the 1 lakh mark within the next five years or sooner,” as the Indian market needs to get bigger to attract more capital inflow. Talking about various sectors, Mobius was enthusiastic about the infrastructure space and said, “One area where you can get a lot more scale is the infrastructure sector if you do IPOs of various infrastructure projects, be it bridges or toll roads.” Earlier, he had also spoken positively about India and stressed that he is closely watching the country’s technology sector.
In FY 2024, 75 Indian companies tapped the capital markets through IPOs. These 71 companies raised a total of nearly Rs 62,000 crore, according to Prime Database data. Compared to last year, this figure has increased by 19%. If you remove LIC from the base year, this figure increases to 58%.
Mobius stressed that the major shift of funds from China to India is yet to happen due to the size of the Indian market. He said that the difference in market capitalisation between India and China is one of the main reasons why large foreign investors from the US find it difficult to invest in India.
Indian equities have seen foreign portfolio inflows of $1.2 billion (Rs 99,84,18,00,000) so far in calendar year 2024. Given the slowdown in China, he expects India to catch up in manufacturing and exports.
Praising Prime Minister Narendra Modi, Mark Mobius said that he is moving towards more and more technology. With a very young population, this is a very exciting time for the country. India offers an attractive consumer business, but it is the technology sector that he is watching closely. “Under Modi’s leadership, India’s technology space has left many developed countries behind. If Modi wins a third term, I can only imagine that there will be a further push for digitisation, which would be great for India”, Mark Mobius stated.
Mark Mobius is an American-born German emerging markets fund manager and founder of Mobius Capital Partners LLP. Previously, he worked at Franklin Templeton, where he led the Templeton Emerging Markets Group for over three decades.
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