Mark Mobius, Founder, Mobius Capital Partners, on Wednesday said that he is bullish on consumer goods, cement and IT services companies but uncertainty remains on real estate.
“Real estate is in an iffy situation in India because of various rules, regulations and all kinds of other problems. We would prefer the consumer facing kind of companies, whether it be in the medical field, consumer products, building materials and software,” said Mobius in an interview with CNBC-TV18.
He is of the view that companies like Persistent Systems will do well. "We hold on to our bullish view on Persistent Systems. There will be ups and downs... Let’s say earnings are going up by 20 percent but the stock goes up by 50-60 percent, we might take some money off the table but generally speaking, a 10-15 percent movement either way is not going to make a big difference," said Mobius.
The stock closed lower by 1.17 percent at Rs 4,336.30 on the BSE today.
Mobius warned against trying "to play the game of going in and out" of the market. "You can get hit because things can unexpectedly happen and you miss the boat if price goes up again and you have sold out and you are not able to get in again," he explained.
Commenting on the record rise in inflation in the US, he said that the Federal Reserve printing money and pumping into the financial system has now led to the unprecedented situation in the country.
"Central bank went into printing of money which is now creating inflation," said Mobius. He added that hiking interest rate would not be adequate to address inflation and that more needed to be done.
US inflation increased for the last one year at its fastest pace in over 40 years. The consumer price index soared 8.5 percent in March, the sharpest year-over-year increase since December 1981.
Meanwhile, India's retail inflation climbed to 6.95 percent in March 2022, the highest in nearly one and a half years. This is the third consecutive month during which the inflation rate remained above the central bank's tolerance threshold of 6 percent.
Mobius added that the Indian market will continue to do very well. "India should be where China is in the global emerging market index," he said.