Currency controls by India would be a big dampener for foreign investors, said Mark Mobius, founder, Mobius Capital Partners in an interview to CNBC-TV18.

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Mobius said India remains at the top of 'pecking order' apart from Brazil and Turkey. With regards to emerging market currencies, he said most currencies are stabilising. “One could see a 5-10 percent decline but we are pretty much near the bottom,” Mobius added.

One could see continued departure of funds from emerging markets until the currencies stabilise, said Mobius. “I don’t think we can count on huge flow in or out, there is going to be little bit more out but eventually it will come back in,” he said.

Talking about the Indian banking systems and their problems, he said the non-performing asset (NPA) numbers may be worse than they look but given the situation there are some good opportunities emerging in the NBFCs and other areas of financial sector, he added.

However, he said, “It is important for the Indian government to make it easier for overseas investors to put money into the market.”

According to him, crude prices could move to $100 per barrel by end of the year or early next year. The key for India is to encourage more foreign investment to come into the country, he said.

With regards to trade war, he said India may benefit from the trade tussle between the US and China because China may not be able to export a number of things and perhaps India could replace China in that regard. “This is something the Indian government should look at carefully," Mobius said.

When asked if he though global growth would be impacted because of trade wars, he said not so much because of trade wars but one cannot expect China to keep growing at 9 to 10 percent because it is so big and would be happy with 5 to 6 percent growth. It is unlikely that there would be much decline in global growth rate.

First Published:Oct 15, 2018 9:48 AM IST