India is going to be the top market to invest in the next year, said Mark Mobius, founding partner of Mobius Capital Partners, adding that the country can stand out due to slowdown in China.
“I believe that India could decouple and move forward ... with China slowing down, India has a good chance to standout. I like the smaller banks, the non-banking financial companies (NBFCs) and the medium and small sized banks. What interests us is the consumer side because with this loan forgiveness of course, you are going to see consumption skyrocket and you are going to see many opportunities in the consumer area ... India is right at the top – it is the top market to invest into in the year 2019 - which is why I am here now,” said Mobius.
On oil prices coming down, he said, “India looks very cheap and with the Brent down, this is very bullish for India."
The US Federal Reserve increased interest rates by 25 basis points while lowering the median forecast for rate hikes in 2019 to two hikes from three earlier.
One basis point is hundredth of a percentage point.
“The Fed is going to continue with this disposal of all these assets that they had over these years. So we can expect further rate hikes but it will be at a much slower pace in my view,” he said.
Talking about farmers loan waiver in India, Mobius said, "What is concerning to us is the political talk about the farmers loan forgiveness – of course it is very good for the farmers for the short-term but for the long-term, it is not a very good move because it means that you are not looking at the basic problems which is infrastructure and other aspects which will help the farmers in the long run."