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Mark Mobius says India growing at 7%, expects 30% drop in US stock markets

Updated : May 31, 2018 10:35:24 IST

Ahead of India's GDP numbers, Mark Mobius, emerging markets fund manager and founder of Mobius Capital Partners LLP, said Indian economy is growing at around 6 to 7% and it "has got tremendous opportunities."

India likely retained the position of world's fastest-growing major economy in the January-March quarter, surpassing China's growth of 6.8%, driven by gains in manufacturing and consumer spending, said a poll by Reuters.

According to the noted investor, emerging markets will have a number of opportunities going ahead. However, he warned that the emerging markets may be hit with the US being vulnerable.

Mobius said that he expected a 30 percent drop in US stock markets as a result of massive outflows from exchange-traded funds.

The US market, though showing a rise in trade in the previous session, has been vulnerable to events that have happened recently.

Donald Trump, US president, has backed imposing high tariffs on steel and aluminium which can inflame global trade tensions.

President Donald Trump's administration is planning to impose tariffs on European steel and aluminum imports, a move that could provoke retaliatory tariffs.

The US also recently cancelled the Singapore summit with North Korea, which hurt the investor sentiment in trade.

Mobius added that global markets have to be ready for more volatility.
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