Mark Mobius: Modi govt taking reforms aggressively; dip in Indian markets due to geo-political tension a buying opportunity

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Updated: September 30, 2016 3:52:25 PM

Stating that reforms are being taken aggressively by the Narendra Modi-led government, Mark Mobius said that any dip due to the geo-political tension is a buying opportunity in India

He also added that the fate of struggling Deutsche Bank would unnerve global markets. He further said that he is a big buyer of the consumption theme, followed by telecom and Internet companies.He also added that the fate of struggling Deutsche Bank would unnerve global markets. He further said that he is a big buyer of the consumption theme, followed by telecom and Internet companies.

Stating that reforms are being taken aggressively by the Narendra Modi-led government, Mark Mobius, Executive Chairman, Templeton Group, told CNBC TV 18 that any dip due to the geo-political tension is a buying opportunity in India. “Reform movement in India is ongoing and is very beneficial and we have complete confidence that India will move forward and the market would do very well,” he said. He also added that the fate of struggling Deutsche Bank would unnerve global markets. He further said that he is a big buyer of the consumption theme, followed by telecom and Internet companies.

“First of all, with these problems in Germany for example, Deutsche Bank with the slowdown of the US market, money is now moving into emerging markets basically India and China. So you can see more of that going forward which will tend to move prices up in these countries. In addition, the valuations of the Asian markets particularly India and China are much more attractive than those of the US and Europe. Then finally, if you look at what is happening on the ground in these countries, things are very good for these markets and will have positive impact on the markets. So I think we have to expect more up movements in India than down movements,” he told CNBC TV 18.

Meanwhile, Deutsche Bank shares fell sharply in early trading following reports that hedge funds are moving some of their business elsewhere. The bank’s stock fell 8 percent Friday, dipping below 10 euros for the first time. Authorities in the United States are seeking $14 billion from Deutsche Bank to settle legal claims over its sales of mortgage securities in the run-up to the global financial crisis in 2008. The bank says it is not seeking government help and has taken steps to sell a subsidiary. Worries over the bank were central to the 2 percent early drop on Germany’s DAX index.

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