Mobius Capital Partners’ Mark Mobius is bullish on India’s IT as he thinks that the country could soon play a major role in global semiconductor production.
What Happened? Mobius, the founder of London-based investment management company Mobius Capital Partners has stated in a tweet that despite India’s IT sector focus on software, he foresees “chips-related companies” rise to the top “when the time comes”.
Mobius links his comments to a recent interview with CNBC-TV18 in his tweet where he addresses a question on why his company’s allocation of investments appears to have reduced when it comes to IT sector companies.
The veteran emerging markets investor clarifies that the allocation only appears to have been reduced because of a change in stock prices and not due to a change in approach.
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Mobius who claims to be unfazed by the Adani-Hindenburg row to remain bullish on India, also talks about Adani Group’s corporate governance shortfalls, adding that the conglomerate could have done a better job at it. That said, the emerging-markets investor concedes that much of the dirt kicked up by the Hindenburg Research report was already known by the market.
"It gives us warning that we have got to look at companies that have too much debt. And in our case, we will not touch a company that has a debt-equity of over 50%," he said.
Mobius also spoke about India’s possible predicament in a scenario where China is attempting to take over Taiwan. “I am not predicting that something will happen tomorrow, but that is a big risk. And in that case, India begins to look very safe," he adds.
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