Templeton's Mark Mobius was interviewed Monday by CNBC in India:
According to Mobius, oil prices are likely to come down to $40 a barrel in the next three or four years. Mobius believes that the valuations of Indian large caps look slightly expensive though he is not in a hurry to exit the Indian market. He also adds that Indian oil companies look a lot more attractive since they face the price control problem.
"In the case of India, we've got lower oil prices and Indian oil companies look a lot more attractive because they have the price control problem and a lower price of crude oil is better for them. And of course, in India, prominent oil companies like IOC are looking very good with prices coming down," he said.
Another interesting paragaph:
"We are looking at mid caps in India and also small caps. We have a new small cap fund being launched in November, so we'll be taking a look at those companies in India. There could be a better value in small caps and mid caps in India."
Mobius says he's underweight India in his BRIC Fund. Most of that fund is invested in Brazil, followed by China and Russia, with India bringing up the rear.
I don't do a lot of stock-buying in the emerging markets. But regular readers know I enjoy following his thoughts because he applies a value approach in a sector largely flush with go-go money.
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