Mark Mobius, a well-known investor associated with emerging markets, believes that Indian export companies will benefit from the weak rupee as well as the policies of the upcoming Trump Administration. He said that after China, India has now become the natural choice in the manufacturing segment, which has also benefited it.
Speaking to CNBC-TV18, Mark Mobius, head of Mobius Emerging Markets Fund, said that Indian companies are getting more opportunities in global trade and business, hence exports are increasing. Mobius said, ‘India’s exports are now set for tremendous growth and now exports are gaining momentum not only in software but also in the manufacturing sector.’
The rupee will continue to weaken against the dollar in the coming times also. Due to this, India’s trade deficit will also increase. Mobian believes that Indian companies whose income is in dollars will continue to perform better. He said, ‘Companies like Infosys which are exporting will be able to be more competitive due to the weak rupee.’
He also said that concerns over valuations should also be seen in the context of growth potential and investors should not be worried that these stocks have reached huge heights in a very short period of time. According to Mobius, if the right direction of earnings continues, this growth will continue.
Mobius said, ‘If a country is growing at the rate of 7-8 percent annually, then the growth of good companies will double. Therefore, an increase of up to 20% in these shares is sufficient compared to the increase in value. 88-year-old Mobius said, ‘My personal desire is to maintain investment in India up to 50 percent.’