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Every dip is a buying opportunity in Indian market: Mark Mobius

MUMBAI: Renowned investor Mark Mobius, who is an authority on emerging markets, sees the recent sideways movement in the Indian stock market as “an opportunity to buy,” as he believes the second wave of Covid-19 has not altered the long-term dynamics for the economy.

“It’s pretty certain that this will pass and vaccination will increase dramatically,” Mobius, who said he was surprised by the resilience shown by the Indian equity market in the face of a catastrophic second wave of Covid-19, told CNBC.

The legendary investor, who now runs his own investment firm, said the sideways movement in the India equity market has created some opportunities to buy, but those opportunities are limited as most stocks have not fallen off the cliff during the second wave.

Indian benchmark stock indices have not fallen even 10 per cent from their record highs hit in mid-February despite nearly 75 per cent of the economy being under some form of lockdown due to a raging pandemic.

Mobius said currently he would prefer to play the Indian stocks through software and related companies as well as healthcare stocks.

On the commodities theme, Mobius cautioned investors that given the ‘incredible’ runup in commodity prices “it’s probably not a good idea to go into that space at the moment.”

In India, the metals space has been a rank outperformer over the past two months, as investors rotated funds out of banks and few other sectors towards metal producers to benefit from surging global commodity prices.

“A lot of commodity companies are not that profitable… I like gold, but would like to hold it physically, and not through gold companies,” Mobius said.

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