Indian Market Driven by Domestic Investors, Says Veteran Investor
New Delhi, 2024-08-09 – Veteran American investor Mark Mobius has stated that the Indian market is primarily driven by domestic investors, not foreign investors. He expressed optimism about the future of the Indian market, citing strong domestic institutional investors and a robust long-term bull market.
Mobius highlighted the complexity of investing in India, citing confusing tax rules and bureaucratic processes. He also raised concerns about tax calculation challenges faced by foreign investors.
The investor expressed confidence in large-cap stocks like Reliance and Vedanta, anticipating strong growth in the IT hardware sector. He believes the long-term bull market is intact and encourages continued investment in quality companies.
Mobius suggested that the Reserve Bank of India’s recent call for increased bank deposits may be aimed at encouraging investors to maintain some funds in traditional financial instruments rather than the stock market. However, he maintains a bullish outlook on global markets as long as the S&P 500 remains strong.
The investor attributed the reluctance of foreign investors to invest in India partly to the complexities of the process. He emphasized the need for simplifying the fund inflow process to further boost market performance.