Thursday, March 4, 2010

Mark Mobious..on India....


Better macroeconomic fundamentals will keep India ahead of the four biggest developing nations in the world, says emerging-market veteran Mark Mobius
INDIA’S shares may “outpace” other emerging markets as the country’s economy strengthens, investor Mark Mobius said in comments about the four biggest developing nations known as the BRICs.
“India’s macroeconomic fundamentals have significantly improved,” Mobius, who manages $34 billion in developing-nation assets at Templeton Asset Management, said in a question and answer interview posted on the company’s web site on Monday.
Templeton, a unit of Franklin Resources, has its largest holdings in Brazil, India and China, Mr Mobius said. The BRIC nations including Russia will “do well in the long run” though they face volatility in the short term, he said.
The Bombay Stock Exchange (BSE) Sensitive Index has lost 4.7% this year, after rallying 81% in 2009 as the economy dodged the worst of the global recession. The statistics agency on February 26 forecast economic growth will quicken to 7.2% in the year ended March 31, from an expansion of 6% in the quarter ended December 31.
Finance minister Pranab Mukherjee said in his Budget speech that India had weathered the worst global economic crisis since the 1930s and that the South Asian nation’s growth may reach 10% in the “not-too-distant future.”
“The government has done a good job in managing the economy through the recent crisis,” said Mobius, the chairman of Templeton Asset Management. “Unlike companies in the US and Europe, most companies have healthy balance sheets and strong cash flows” in India.
The Sensex rose 2.1% to 16,676.2 to their highest close in five weeks after a report showed manufacturing output climbed the most in 1-1/2 years in February. Shares also advanced for a second day after the government pledged on February 26 to trim the fiscal deficit from a 16-year high while boosting funds for roads, bridges and power plants.
Indian stocks may advance another 20% from current levels given the outlook for the economy, Sachin Shah, manager of the Alchemy India Long Term Fund, which has gained 90% in the past year, said.
“Valuations are at this point of time quite normal,” Shah said. “I don’t think there’s much to fear from the domestic point of view.”
Companies on the Sensex index are valued at 20.3 times estimated earnings, compared with an average of 17.4 times over the past four years, based on weekly data compiled by Bloomberg.
India’s stock market was among the 10 best performers globally in 2009, according to data compiled by Bloomberg. Still, it trailed a 121% gain in Russia’s Micex Index as well as an 83% rally in the Bovespa Index in Brazil. China’s Shanghai Composite Index gained 80%. In Brazil, the growing consumer market creates “opportunities” for companies including financial services, healthcare, cosmetics and beverage companies, Mobius said in the report.
Russia’s “long-term outlook” is positive given its foreign-exchange holdings and natural reserves as well as the market’s valuations, he said. — Bloomberg


  1. Hi rajeev any idea about a.k. Capital services eps of 71 and trading @ 278, very low float, I earlier bought money this sector as advised by you ... In good profit on that one. Thanks ravi

  2. Hello Rajeev ji,
    I am unable to decide if Petron Engg is still a buy ?
    Can I enter at this level 313 ? Is there still any steam left in this counter ?

  3. Om,
    I donno why it happens with u that u always become late to buy stocks.....
    Petron is not a good buy now....It is up from 169 to 311....that is a huge runup....

  4. Om, It seems that when I recomend stock u r not convinced about it.You are not sure whether it will run or not and so u don't buy it but then when it runs u feel left out....

  5. Om,
    I have listed some 13 stocks on 2nd Mar '10,instead of buying from those u r trying to buy which already ranup.It again says that u want instant runup.....that is never going to happen with my call...