Mobius Capital Partners is very bullish on India and will increase its portfolio here going forward, its founder Mark Mobius said in an interview with Mint on Monday. Mobius added that they have not invested in the Adani group stocks because of the group's high debt.
"We do not want to have investments in companies with high debt and that is the reason we tended to stay away from Adani companies," he said in the interview.
He added that India has done "exceptionally well" and is being noticed by investors globally.
"The outlook for India is very good and assuming that the Indian government continues its reforms process and pays attention to investors coming to India, it is going to be a big boost to the country," he was quoted as saying by Mint.
On rate hikes, Mobius said that the US Federal Reserve's job is "probably done". He, however, added that we could be heading into a recession, but the US government's spending is holding us back.
He said that the US government's funding programmes for infrastructure, semiconductors and other industries may ease the pressure of high-interest rates.
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Mobius also said that India is among the top two countries in their portfolio. "Two biggest markets in our portfolio are Taiwan and India. In India, we are invested in software services, industrial metals and medical testing," he said.
In an earlier interview with Business Standard, Mobius said that they prefer companies with a debt-equity ratio of over 50 per cent. But some Adani companies have a debt-equity ratio over that.
"If they are able to bring that down, we will certainly look at it," he said.
