Mark Mobius believes that the Sensex will reach 1 lakh in the next five years and has investments in Dreamfolks, MapmyIndia, and other companies

 Mark Mobius believes that the Sensex will reach 1 lakh in the next five years and has investments in Dreamfolks, MapmyIndia, and other companies

Mobius claims that investors may locate these kinds of businesses in industries including software, building supplies, and healthcare. He is placing a lot of money on equities such as MapMyIndia, APL Apollo Tubes, Dreamfolks Services, and Persistent Systems, for example.

India's long-term growth narrative is still intact. On the fringes of the Morningstar Investment Conference, Mobius told Moneycontrol that we would have invested more money in India if there had been a little bit more decline.

According to global financial expert milestone Mobius of Mobius Capital Partners, who is a strong supporter of the Indian equities market in the emerging markets arena, the Sensex is expected to cross the one lakh milestone within the next five years.

"With the US 10-year Treasury offering a 5% risk-free return, the argument in favor of stocks has become a little shaky. Nevertheless, India's long-term development narrative is still intact. In fact, we would have invested more money in India if there had been a little bit more correction, Mobius said to Moneycontrol at the Morningstar Investment Conference.

Nifty and Sensex have dropped about 3.5 percent over the last two weeks due to escalating tensions in Israel, increasing bond rates, and fluctuating oil prices.

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"There are now three major world events to be aware of. Israel, the South China Sea, and Ukraine. Furthermore, I think the markets will handle everything with grace. The interest rate, however, is what matters most. The US will need some time to reach the Fed's 2 percent inflation objective. Interest rates will remain at current levels for a longer period of time until then, according to Mobius.

The Federal Reserve kept interest rates unchanged in September, ranging from 5.25 to 5.50 percent—the highest level in 22 years. It is anticipated that the central bank will once again keep rates unchanged in its next rate announcement on Wednesday.

Sectors and stocks to wager on

In terms of price-to-earnings ratio, India may seem pricey in comparison to other rising economies, Mobius acknowledged. The 'E' in the P/E ratio is often overlooked, however, as many people are only concerned with the 'P'. A solid Indian firm can easily expand at a rate of 12–13 percent annually, which is double the country's GDP growth rate, the speaker said.

Mobius claims that investors may locate these kinds of businesses in industries including software, building supplies, and healthcare. He is placing significant bets, for example, on equities of Dreamfolks Services, APL Apollo Tubes, Persistent Systems, and MapMyIndia.

"These companies have high return on capital ratios, low debt, along with excellent growth ahead of them," Mobius said, restating his preference not to examine the well-known, well studied companies that are included in the index.

In a previous live interview two years before, Mobius had listed Metropolis, Persistent Systems, APL Apollo, and Polycab as his top choices.

At the moment, Mobius is very excited about MapmyIndia, a company that offers utilities and mapping services. "Watching MapmyIndia take off validates our faith in their concept. The business is excelling in location technology and mapping," he said on Linkedin on October 18. Thus far in 2023, investors' wealth has quadrupled thanks to the stock.