Veteran investor Mark Mobius of Mobius Capital Partners' allocation to Indian equities is at the highest it has ever been. In an exclusive interaction with CNBC-TV18, Mobius, who manages nearly $300 million in assets under management across various countries, said that global investors who intend to invest in Emerging Markets, have India as the main option.

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Often regarded as the founder of Emerging Market investing, Mobius said that his exposure to India is currently at 20 percent, which is at least double of the 5-10 percent exposure he historically had.

Indian equities have had a topsy turvy September series, during which the Nifty 50 index crossed the mark of 20,000 before entering a phase of correction and consolidation. Nonetheless, the index is up nearly 10 percent for the year and is set to post its eighth straight year of positive returns.

"(The) opportunities in India are terrific, and it does not make sense to reduce weightage in India," Mobius said.

Mobius further said that India will be affected with the macro economic changes taking place globally. Global markets, including the US, have not taken the news of the US Federal Reserve projecting one more rate hike for this cycle well.

However, Mobius believes that interest rate cycle is nearing a peak and that the Fed is unlikely to raise interest rates.

Another headwind for Indian equities has been crude oil prices, which are currently at $95 per barrel, trading at multi-month highs. Mobius believes that similar to the US interest rates, the crude oil prices are also near their peak as more people are switching to crude oil alternatives.

(Edited by : Hormaz Fatakia)

First Published:Sept 27, 2023 3:08 PM IST