Latest news with #Mobius
Hans India
08-08-2025
- Business
- Hans India
Huge domestic mkt will cushion India from US tariffs: Mark Mobius
New Delhi: Billionaire investor Mark Mobius said on Thursday that upcoming 50 per cent tariffs on India, imposed by US President Donald Trump, will have less impact on the country as it has a massive domestic market to cushion itself, and does not fully depend on exports like China. The global investor who runs the Mobius EM Opportunities Fund for emerging markets (EMs), said India is in a good position to navigate these tariffs than other nations. 'India has a huge domestic market and does not depend on exports like China. Also, Indian software exports are great and escape tariffs,' he noted. 'Conclusion: no big problem for India,' Mobius said. According to Mobius, the kind of GDP growth India is witnessing will help it on the road to become the third-largest economy in the world. 'The country is witnessing 6-7 per cent growth despite global uncertainties which shows the resilience in its economy. It will help India continue to move up the ladder,' said Mobius. In just a few years, India has risen from being the world's 11th-largest economy to the fourth largest. As of 2025, India trails behind the US, China and Germany in terms of total GDP. Shipments worth more than $30 billion involving pharmaceuticals and certain electronic items such as smartphones, semiconductors, and energy are so far secure from higher duties as these are still under an exemption list. Trump has not yet included these key industries in the new tariffs that are slated to come into effect in the next 21 days. Moreover, India exported drugs and pharmaceuticals as well as electronics products (mostly smartphones) to the tune of $10.5 billion and $14.6 billion in FY25, constituting 29 per cent of its overall outbound shipments to the US. Petroleum exports, worth $4.09 billion in FY25, are also currently secure from Trump's fresh tariffs thanks to energy being on the exemption list as well. Indian exports to the US stood at $86.51 billion in FY25.
Time of India
23-06-2025
- Business
- Time of India
India at the top of mind with new opportunities; potential regime change in China may boost market: Mark Mobius
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ofremains highly optimistic about India, citing numerous undervalued companies with strong earnings and return on capital. He anticipates launching a new fund with a significant allocation to the Indian market. Mobius also suggests potential regime change in China, anticipating a shift towards private enterprise, which could boost the Chinese market Inflation will always be with us because governments tend to print more currency than what is required by the economy. Generally speaking, central banks will increase their currency outflows by at least 2% a year. So, what does that mean? That means you have got to be in the equity market because the equity market adjusts for inflation. Since companies do not just sit by and keep the same prices, they keep on raising their prices in line with the increasing inflation. The only way to beat inflation is by investing in good companies with good earnings that have dividends and are raising their prices in line with and in excess of inflation.I am still very bullish on India . There are so many bargains to be had. In fact, I was just looking at the market and I am very bullish. There are so many great companies with good earnings, with very strong return on capital, etc. So, there is always going to be an opportunity in India in one way or the other because the stocks do not move up, some of them go down and they present opportunities.I have a new fund that I have started and we are now waiting for permission to enter the Indian market. Hopefully, it will happen within the next few weeks. And when that happens, I will be bringing this new portfolio up to at least 30% or 40% in India because India is really at the top of my mind. And there are so many great opportunities. I was just looking at some stocks today and you have got some companies like Satin Industries which look really interesting and we are moving up very nicely. So, there are lots of opportunities.: We do not look at sectors alone. We look at companies to begin with, but generally speaking, companies in India that are in the software industry or in the tech industry tend to be interesting and better buys. But the Indian market is so wide that we should look at companies that are using technology to improve profitability. So, that is where we are looking. It can be in any sector, it can be in consumer, it can be in travel, it could be in anything as long as they are using technology to increase their margins, increase their not all of them. Some of them we have sold for the other fund that we have in the UK, but we are holding on to most of those. It depends on the status of the portfolio. We are running a few portfolios, but we are constantly rejiggling our markets because at the end of the day, some of these companies are moving very fast. When they move up too fast, we will want to take profits and move on to something have sold a few of them, but most of them we have held on to. When I say sell, very often we are still holding them, but we are just reducing the weightings. That is what we are the situation is not necessarily what the companies are doing now, but what we expect them to do in the future and that is the reason why a lot of these IT stocks are moving up because the market expects them to accelerate earnings, that is really the story. So, we are looking forward to it. Even though the historical growth has been, let us say, 10% a year, the future growth may be much more and that is what the market is looking at. I am not saying that all these stocks are busy as a result of this kind of thinking, but many of them are because the expectation of future growth is the interesting thing about China is there is a good possibility of a regime change. In other words, the news we are getting out of China is that Xi Jinping is probably on the way out. What does that mean? It means that China will probably move away from a government oriented market. In other words, the emphasis will shift from government companies to a more private enterprise market, which will be very bullish for the market you look at the Chinese market, you will see that it is beginning to move up very nicely. So, they are anticipating a change in the entire structure of the government and the Communist Party orientation towards government-owned companies will move away towards the private sector companies. And that will be very good for the market generally. So, I believe we are going to see a better market as Xi Jinping exits the they begin to realise that these tariffs are not going to hold. In other words, these amazingly high tariffs that Trump initially announced were just a bargaining chip. They realise that these tariffs will not be implemented in the way that everyone originally expected. So, you are going to see a much more realistic tariff situation globally, simply because American companies, to begin with, depend on their flows of products from all around the other words, many companies depend on 50% of their products' components coming from other parts of the world, particularly China, but now more and more from India and other countries. I think the market is beginning to sense that and realise that, hey, this tariff war situation is not going to last forever and we are probably going to get to a more stable situation. The Americans are already signing agreements with a number of countries around the world and that is going to continue.
Economic Times
23-06-2025
- Business
- Economic Times
India at the top of mind with new opportunities; potential regime change in China may boost market: Mark Mobius
Mark Mobius of Mobius Emerging Opportunities, remains highly optimistic about India, citing numerous undervalued companies with strong earnings and return on capital. He anticipates launching a new fund with a significant allocation to the Indian market. Mobius also suggests potential regime change in China, anticipating a shift towards private enterprise, which could boost the Chinese market. In the last 16 years, we have seen inflation being artificially low. Every time it seems that inflation is making a comeback, the scare goes away. Today, global inflation is under control. In India, inflation is at a multi-year low. What role will inflation play for markets in coming years? Mark Mobius: Inflation will always be with us because governments tend to print more currency than what is required by the economy. Generally speaking, central banks will increase their currency outflows by at least 2% a year. So, what does that mean? That means you have got to be in the equity market because the equity market adjusts for inflation. Since companies do not just sit by and keep the same prices, they keep on raising their prices in line with the increasing inflation. The only way to beat inflation is by investing in good companies with good earnings that have dividends and are raising their prices in line with and in excess of inflation. When we spoke to you last time, you said that India was your largest global position and you were excited about the investments you had made. What is your stand in India after the recent runup in the market? Mark Mobius: I am still very bullish on India. There are so many bargains to be had. In fact, I was just looking at the market and I am very bullish. There are so many great companies with good earnings, with very strong return on capital, etc. So, there is always going to be an opportunity in India in one way or the other because the stocks do not move up, some of them go down and they present opportunities. What was your large investment in India? And give us the thought process behind this. Mark Mobius: I have a new fund that I have started and we are now waiting for permission to enter the Indian market. Hopefully, it will happen within the next few weeks. And when that happens, I will be bringing this new portfolio up to at least 30% or 40% in India because India is really at the top of my mind. And there are so many great opportunities. I was just looking at some stocks today and you have got some companies like Satin Industries which look really interesting and we are moving up very nicely. So, there are lots of opportunities. Can you repeat again what looks interesting to you? Mark Mobius: We do not look at sectors alone. We look at companies to begin with, but generally speaking, companies in India that are in the software industry or in the tech industry tend to be interesting and better buys. But the Indian market is so wide that we should look at companies that are using technology to improve profitability. So, that is where we are looking. It can be in any sector, it can be in consumer, it can be in travel, it could be in anything as long as they are using technology to increase their margins, increase their profitability. When we spoke to you last time, some of the investments which we discussed were Vodafone, Persistent, APL Apollo, and Waaree Renewable. Are you still holding on to those investments? Mark Mobius: No, not all of them. Some of them we have sold for the other fund that we have in the UK, but we are holding on to most of those. It depends on the status of the portfolio. We are running a few portfolios, but we are constantly rejiggling our markets because at the end of the day, some of these companies are moving very fast. When they move up too fast, we will want to take profits and move on to something else. Which are the positions you are still holding on to out of the names I mentioned and which are the ones you have squared off? Mark Mobius: We have sold a few of them, but most of them we have held on to. When I say sell, very often we are still holding them, but we are just reducing the weightings. That is what we are doing. You have been a big votary of IT and you just mentioned that IT stocks are looking strong. But this is one sector where growth is single digit and PE multiples are in their early 20s or late teens. Does it make sense to buy a sector which is marred with disruption, that is AI, and where growth is now threatening to remain in single digit for many more quarters? Mark Mobius: Well, the situation is not necessarily what the companies are doing now, but what we expect them to do in the future and that is the reason why a lot of these IT stocks are moving up because the market expects them to accelerate earnings, that is really the story. So, we are looking forward to it. Even though the historical growth has been, let us say, 10% a year, the future growth may be much more and that is what the market is looking at. I am not saying that all these stocks are busy as a result of this kind of thinking, but many of them are because the expectation of future growth is there. At the beginning of the year or about the same time last year, the narrative was to go back to China because it is cheap, it has underperformed for a long period of time and the economy was getting ready for a jumpstart. But that long live China trade has completely petered away. Why is that and what it means for India? Mark Mobius: Well, the interesting thing about China is there is a good possibility of a regime change. In other words, the news we are getting out of China is that Xi Jinping is probably on the way out. What does that mean? It means that China will probably move away from a government oriented market. In other words, the emphasis will shift from government companies to a more private enterprise market, which will be very bullish for the market generally. If you look at the Chinese market, you will see that it is beginning to move up very nicely. So, they are anticipating a change in the entire structure of the government and the Communist Party orientation towards government-owned companies will move away towards the private sector companies. And that will be very good for the market generally. So, I believe we are going to see a better market as Xi Jinping exits the scene. Let us look at international headlines, the tariff fear. Most of the markets have recouped whatever they lost in April and May. From a global market standpoint, is the tariff fear over? Mark Mobius: Yes, they begin to realise that these tariffs are not going to hold. In other words, these amazingly high tariffs that Trump initially announced were just a bargaining chip. They realise that these tariffs will not be implemented in the way that everyone originally expected. So, you are going to see a much more realistic tariff situation globally, simply because American companies, to begin with, depend on their flows of products from all around the world. In other words, many companies depend on 50% of their products' components coming from other parts of the world, particularly China, but now more and more from India and other countries. I think the market is beginning to sense that and realise that, hey, this tariff war situation is not going to last forever and we are probably going to get to a more stable situation. The Americans are already signing agreements with a number of countries around the world and that is going to continue.
Hans India
26-05-2025
- Business
- Hans India
Indian economy to move up ladder due to robust policies, long-term vision: Mark Mobius
India breaking into the world's top four largest economies is due to its robust policies across the spectrum and a long-term vision, billionaire investor Mark Mobius said on Monday. Speaking to IANS, the global investor who runs the Mobius EM Opportunities Fund for Emerging Markets (EMs), said he was not surprised at India's continuous elevation in the table of world's largest economies. 'I am not surprised that India is moving up in the world's top economies ranking. The 140-crore population, under the visionary leadership of Prime Minister Narendra Modi, is now eager to reclaim their deserved place on the global map,' Mobius said. He further stated that the kind of GDP growth India is witnessing will help it on the road to become the third-largest economy in the world soon. 'The country is witnessing 6-7 per cent growth despite global uncertainties which shows the resilience in its economy. It will help India continue to move up the ladder,' said Mobius. In just a few years, India has risen from being the world's 11th-largest economy to the fourth-largest. As of 2025, India trails behind the US, China and Germany in terms of total GDP. Mobius told IANS that India has the potential to become even the second-largest economy in the world. "India now has a substantially larger population than China. It is now estimated that China's population is actually 800 million or less, with an average age much higher than India's 1.4 billion people," he contended. India has just surpassed Japan to become the world's fourth-largest economy and is now poised to displace Germany from the third rank in the next 2.5 to 3 years, according to NITI Aayog Chief Executive Officer (CEO) B.V.R. Subrahmanyam. 'We are the fourth-largest economy as I speak. We are a $4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan," said Subrahmanyam at a Press conference of the 10th NITI Aayog Governing Council Meeting. The IMF had stated earlier this month in the World Economic Outlook report that India is poised to become the fourth-largest economy globally in 2025, with the country's nominal GDP rising to $4,187.017 billion to surpass Japan's GDP pegged at $4,186.431 billion. According to the report, India continues to remain the world's fastest-growing major economy and the only country expected to clock over 6 per cent growth in the next two years.
Economic Times
15-05-2025
- Business
- Economic Times
India top market for me, but regulatory red tape holding it back: Mark Mobius
Live Events India outlook remains firm despite tensions Focus on fundamentals, not headlines 'I refuse to play a fool's game' (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Veteran emerging-markets investor Mark Mobius on Thursday reaffirmed his bullish stance on Indian equities , calling the country his 'top market' despite heightened geopolitical tensions with Pakistan. However, he warned that bureaucratic red tape is slowing foreign investor access, saying regulatory delays have held back his new fund's deployment in the a post on microblogging site X (formerly Twitter), Mobius reiterated his long-held view that market timing is futile. 'People often ask how I time the market. The simple answer is, I don't,' he wrote. 'Trying to guess which way the wind will blow tomorrow is a fool's game. Markets rise and fall for reasons that don't always make sense. Those who spend their time predicting daily market swings tend to spend a lot of time being wrong.'Mobius linked his latest blog post titled "Avoiding the Fool's Game" in his X post, in which the Mobius Capital Partners co-founder said that his Mobius Emerging Opportunities Fund had been holding 95% of its assets in cash just two weeks ago, but that figure has now dropped to 60% as the fund has started redeploying capital.'That's just the nature of this business. One moment you're waiting, the next you find something worth buying,' Mobius who has been investing in developing economies for more than three decades, played down the impact of fresh friction between India and Pakistan on markets, calling such events historically inconsequential to long-term fundamentals.'These two countries have had a long and complicated history, and the latest round of friction, while serious, isn't new,' he said. 'A ceasefire has been announced, which should help ease concerns in the short term. But in my experience, these tensions rarely have a lasting/significant impact on the market itself.'Instead, Mobius identified regulatory inefficiencies as the more serious headwind for investors. 'Since our fund is new, we've found it slow and difficult to get proper access to the Indian market,' he said. 'The paperwork alone has held us back for months. If India wants to attract more long-term capital, simplifying these processes would go a long way.'While Mobius said the macro picture continues to matter, citing lingering uncertainties in the U.S.–China trade relationship, he urged investors not to get 'caught up in news headlines.''For the U.S.–China trade relationship, things may look more stable on the surface now that some agreements have been reached. But implementation is what really matters and non-tariff barriers will likely remain a sticking point,' he veteran investor cautioned that market volatility is likely to persist in the near term. 'So I do expect markets to be choppy for a while,' he said. Still, he encouraged investors to stay focused on company fundamentals: 'Do your homework and stay focused on searching for good businesses with strong fundamentals. That's really all that matters when it comes to investing.'Mobius also highlighted mid-cap stocks as an area of particular interest for his team. 'They're not always on the radar of big institutional investors, and that's where we often find value.'Mobius's blog post ended with a photo of him being mock-threatened by a Jack Sparrow impersonator at the Atlantis hotel in The Bahamas. In the image, the costumed pirate playfully grabs Mobius by the collar while pointing a fake rifle. The caption reads: 'I refuse to play a fool's game (photo taken at the Atlantis hotel in The Bahamas).'The emerging-markets investor's remarks come at a time when global market sentiment remains fragile. After an initial rally earlier this week on optimism over a U.S.–China trade truce and high-profile investment deals from the Middle East during former President Donald Trump's Gulf tour, equities lost steam by Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.15%, while U.S. equity futures also edged lower ahead of key data were awaiting U.S. retail sales figures and earnings from Walmart for insight into consumer sentiment, as well as a speech by Federal Reserve Chair Jerome Powell for cues on the interest rate read | Mark Mobius says his funds hold 95% in cash on trade war risks (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
