Emerging market guru Mark Mobius says he sees some very good opportunities in the non-banking financial companies as "some of these companies will survive and grow".

With regards to the tussle between the government and the Reserve Bank of India (RBI), he said that it did spook the foreign investors.

“It did spook foreign investors because they are always concerned about central bank’s independence. It doesn’t spook me, I don’t think this is a big deal. In fact, it is pretty well known that the central bank in India has a lot of cash, maybe too much than what they need and some of that could be given back to the government. I think that is what Modi is trying to do,” he said.

Mobius added that Prime Minister Narendra Modi's decision on farm loan waivers will be keenly watched.

“...we are holding our breath to find out what PM Modi is going to do because if you want to get elected, you have to give something to the farmers. So if this battle – this trade-off continues, it is not going to be very good for the budget,” he said.