In an interview to Barron’s, Mark Mobius, the executive chairman of Franklin Templeton’s emerging markets group, has revealed his favourite Indian stocks. He said:
“We love consultancy companies like Tata Consultancy Services (500570.IN). These big outsourcing companies are global in nature, and they’ve been helped by the devaluation of the rupee – since their income is in dollars but their cost in rupees. We like some of the consumer companies, and, again, petroleum and energy. In fact, we like anything to do with energy and vehicles, like Bajaj Holdings (500490.IN) and Tata Motors (532540.IN). Overall, there’s going to be a big opening up of that market, and there are a few things that Modi can do that would probably double the amount of money going into India.
For example, pension fund clients can’t easily invest in India because the government requires them to reveal the list of all of their pensioners. Can you imagine that? But Modi can eliminate that with a stroke of a pen, along with other restrictions on getting into the Indian market.
Also, and it’s really interesting, but the Japanese are very eager to invest in India. The size of the India market is appealing to Japanese investors. They’re not too welcome in China, so they would be delighted to be able to go more freely into India.”
In an earlier interview to ET, Mark Mobius has declared that he is “Very bullish on India; Narendra Modi government has renewed optimism”. He said that he sees a ‘lot of opportunities‘ in small cap stocks. He is also bullish on oil & gas stocks, tech stocks and banks. “Banks will benefit from economic recovery,” he added.
On an earlier ocassion, Mark Mobius has also given tips on How To Find Multibagger Stocks