Ace investor Mark Mobius sees Sensex hitting the 1,00,000-mark by the end of the year as ongoing rally in Chinese quities.
Mobius, who is also referred as 'The Indiana Jones of Emerging Market Investing’, said that if capital market regulator SEBI comes out with regulations to limit derivatives activity then it could have an ‘unprecedented’ impact on the market.
Speaking to CNBC-TV18, Mobius added that he will advise funds coming to emerging markets to deploy half of their allocations to India. He also said that he is very much interested in India’s semiconductor story as serious global players enter the Indian ecosystem. He said, “Those will be interesting to keep an eye.”
Foreign funds should deploy at least 50 percent of the fresh money for EMs in India, 25 percent in China and Taiwan, and another 25 percent in Vietnam, Turkey, Brazil, South Korea and Thailand, he said.
Speaking on the ‘golden rush’ for Indian IPO offerings, he expressed caution and said, “It is not a good idea to pile in to the IPOs unless you are certain about the business.”
Mobius is upbeat on India Inc’s earnings potential. "In P/E, the Earnings moving up means valuations do not look steep,” he said. Mobius also made a case for investing in gold. “It is a good idea to hold gold, may be 10 percent of portfolio. One of the reasons of gold’s price rise is the Indian buying,” he added.
Among Indian equities, Mobius sees real estate and commodity as bullish bets. He also sounded upbeat on the metals and related space such as automotive and infrastructure. Besides, pharma and financials are also worth to be looked at, Mobius said.
The veteran investor believes there may be a ‘new bull market’ emerging in China as Chinese President Xi Jinping seems to have shown willingness to help small businesses with recent stimulus initiatives.
China has launched a slew of fiscal as well as monetary measures to boost growth and demand in Chinese economy, triggering a sharp upmove in China’s benchmark indices last week.
Market takes a beating
Meanwhile, Sensex, Nifty and Nifty Bank took a beating today morning amid fears the market regulator SEBI in a board meeting could announce measures to curb retail participation in the futures and options (F&O) segment.
Sensex fell 700.29 points, or 0.82 per cent, to 84,871.56, with the BSE market capitalisation m-cap falling 3.15 lakh crore to Rs 474.77 lakh crore. A total of 2,101 listed stocks on BSE fell, while only 1,195 advanced. A total of 37 stocks hit their 52-week lows while a total 116 stocks hit their respective lower circuit limits. Nifty slipped below the 26,000-mark and was trading 180 points, or 0.69 per cent, lower at 25,998.95. Nifty Bank declined 608.20 points, or 1.13 per cent, to 53,226.10.