What Mark Mobius says on stock market, midcap stocks, Tata group & more

Emerging markets investor Mark Mobius, who is also Chairman at Mobius Emerging Opportunities Fund, said he would stick with his Sensex target of the 1,00,000-mark in the next five years. In an interview to CNBC-TV18, Mobius said the BSE benchmark would hit the 1 lakh mark within the next five years or earlier.

This was Mobius' reiteration of his previous views on a day the 30-pack index  hit the 75,000-mark for the first time ever. Speaking at the Morningstar Investment Conference in October last year, he expected the index to hit the magical mark.  

Mobius said India is beginning to outperform the US market and that it makes sense for people to look at India, CNBC TV-18 reported. That said he cited a problem of market size. "There needs to be more equity offerings in India, more IPOs and hopefully more government enterprises being listed in the market because India has some very large government enterprises that can be listed," Mobius told CNBC-TV18.

A big shift of money from China to India is yet to come due to the market size in India. Mobius said the market capitalisation difference between India and China is one of the key reasons why large foreign investors from the US find it difficult to invest in India, CNBC-TV18 reported.

Mobius said India is the largest democracy, it has an incredible election system and that investors are looking for a alternatives of China and India is becoming a logical choice for most global investors.

In the CNBC-TV18 interaction, Mobius said the infrastructure sector in the country, particularly railways and airlines, is likely to be a high growth sector. "One area where you can have a lot more size is the infrastructure sector if you do IPOs of various infrastructure projects, whether it be bridges, toll roads," Mobius. He further said that Railways as a sector has "incredible potential for growth," CNBC TV-18 reported him as saying.

Mobius said companies in midcap and smallcap pocket can be looked at for investments and said he was looking at PSU companies closely, especially the ones in the infrastructure space.

Mobius said an increased demand will help Tata Group companies do well. India’s earnings are growing at a much faster pace versus US and China, he said.