According to emerging markets investing expert and Mobius Capital Markets founder Mark Mobius, a significant portion of the investment capital that was intended for China is now likely to end up in India. His remarks follow a first for China: a fall in foreign direct investment (FDI) of about 10% since 1998.
A glance at the figures will reveal that monetary inflows into India have been sizable and are on the rise, according to Mobius, who spoke with CNBC-TV18. Investments in both public and private funds are encompassed in this. As a result, a large sum of money that would have otherwise gone to China will end up in India. Even though Mobius predicted that some investors would keep flocking to China, he also predicted that India would keep reaping the benefits of this trend.
According to the country's commerce ministry, foreign investment flows into China had a 9.4 percent year-on-year decline, reaching $136.4 billion, in the first 10 months, as announced on Friday.
While FPIs sold down their holdings in India in October and November, they have invested more than $10 billion into the country's economy thus far in 2023.
During the conversation, Mobius went into further detail about how they calculate ROI by comparing prices to earnings or book value. He gushed about how astounding it is to see how many profitable businesses there are in the Indian market through their scanning. According to Mobius, with a good ROI, you can afford to reinvest and expand.
Mobius recently predicted that the Sensex will reach 100,000 in the next five years when speaking at the Morningstar Investment Conference. The Sensex, in my opinion, will easily reach 100,000 in the next five years. However, adjustments will be made in due course. Markets are unpredictable, therefore there will be slumps. One of my favorite things about market downturns is the opportunity they present to purchase at steep discounts. In anticipation of such chance, I save money," he had stated at the occasion last month.
Also, he mentioned that demographics and diversity were two of the favorable characteristics that boded well for the Indian economy. He boasted that they "made a lot of money in India in the last few years" and that India ranks second in terms of nation exposure in their portfolio. He listed India's youthful population, innovative spirit, technological prowess, and cultural variety as some of the country's greatest strengths.
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