Mark Mobius sees opportunity in weaker Rupee; know how can it help, which sectors can benefit
Mark Mobius, chairman of Mobius Emerging Opportunities Fund, while a depreciating rupee may deter foreign investment in India, companies focused on exports could gain a competitive edge against China due to the weakened local currency.
- Jan 4, 2025,
- Updated Jan 4, 2025 10:01 AM IST
Renowned emerging market investor Mark Mobius stated on Friday that export-oriented companies with dollar income will benefit from a depreciating rupee, making them more competitive. According to Mobius, chairman of Mobius Emerging Opportunities Fund, while a depreciating rupee may deter foreign investment in India, companies focused on exports could gain a competitive edge against China due to the weakened local currency.
He also views India as a promising investment prospect, citing its growth, reforms, and the Trump 2.0 administration's adversarial stance towards China.
“I would look at export-oriented companies to begin with because of the currency situation, and also because India is gradually becoming more competitive against the Chinese exporters,” Mobius told CNBC TV 18 on Friday.
Mobius stated that stocks with a US dollar revenue component are expected to perform well in the future.
Like, he added, Infosys, a major software exporter, is expected to enhance its competitiveness as a result of the depreciating rupee. He predicts a rise in exports not only in software but also in the manufacturing sector from India in the near future.
Mobius said, “The Trump 2.0 administration will not favour the Chinese market and if you look at the global picture, where else can investors go?… India comes up all the time because of the incredible growth of the country, because of the reforms that are taking place under the current government, and so much of value in the market including companies with very high return on capital."
He anticipated President-elect Donald Trump would streamline business operations in the United States by reducing paperwork. This change is expected to benefit foreign companies, as America is seen as the next best location for manufacturing after China. Additionally, Mobius supported the ongoing reform efforts in India and believes that the country will see significant advantages. The seasoned emerging market investor also expressed his desire to allocate 50% of his investments in India.
“Where else can investors go overseas? India comes up all the time because of the incredible growth of the country, the reforms that are taking place under the current government, and because there is so much value in the market,” Mobius said. “My personal desire is to be 50% invested in India,” he said.
Renowned emerging market investor Mark Mobius stated on Friday that export-oriented companies with dollar income will benefit from a depreciating rupee, making them more competitive. According to Mobius, chairman of Mobius Emerging Opportunities Fund, while a depreciating rupee may deter foreign investment in India, companies focused on exports could gain a competitive edge against China due to the weakened local currency.
He also views India as a promising investment prospect, citing its growth, reforms, and the Trump 2.0 administration's adversarial stance towards China.
“I would look at export-oriented companies to begin with because of the currency situation, and also because India is gradually becoming more competitive against the Chinese exporters,” Mobius told CNBC TV 18 on Friday.
Mobius stated that stocks with a US dollar revenue component are expected to perform well in the future.
Like, he added, Infosys, a major software exporter, is expected to enhance its competitiveness as a result of the depreciating rupee. He predicts a rise in exports not only in software but also in the manufacturing sector from India in the near future.
Mobius said, “The Trump 2.0 administration will not favour the Chinese market and if you look at the global picture, where else can investors go?… India comes up all the time because of the incredible growth of the country, because of the reforms that are taking place under the current government, and so much of value in the market including companies with very high return on capital."
He anticipated President-elect Donald Trump would streamline business operations in the United States by reducing paperwork. This change is expected to benefit foreign companies, as America is seen as the next best location for manufacturing after China. Additionally, Mobius supported the ongoing reform efforts in India and believes that the country will see significant advantages. The seasoned emerging market investor also expressed his desire to allocate 50% of his investments in India.
“Where else can investors go overseas? India comes up all the time because of the incredible growth of the country, the reforms that are taking place under the current government, and because there is so much value in the market,” Mobius said. “My personal desire is to be 50% invested in India,” he said.