Mobius Doubles Down on India as Fund Exodus Seen Fleeting
- India in a ‘sweet spot’ and top emerging market pick: Mobius
- GAM expects minimal impact from rise in U.S. interest rates
Mark Mobius.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
The Indian rupee’s longest losing streak since May masks growing confidence among global investors in Prime Minister Narendra Modi’s management of the world’s fastest-growing major economy.
A combination of high yields, improving public finances and room for interest-rate cuts will lure back overseas investors trimming emerging-market debt in the face of global risks such as a potential U.S. rate increase, according to Franklin Templeton Investment Funds, Mirae Asset Global Investments Co. and GAM International Management Ltd. Foreign funds are selling Indian shares this month for the first time since February, while their bond holdings have fallen the most since June, as odds of a Federal Reserve hike rose.