Mark Mobius, Managing Director, Templeton Asset Management is leading a return of fund managers to India as the experts believe that India's domestic demand will help the country to come out strong in the current global recession.
   
“Domestic industries can build high profits and growth,’’ Mark Mobius, who manages more than $24 billion in emerging-market assets as executive chairman at San Mateo, California based Templeton Asset Management, said. He is buying Indian consumer-related stocks.

Slowing global growth may benefit India by giving the Reserve Bank of India “scope’’ to cut rates after crude-oil prices tumbled 60 per cent in four months, Mobius said. India is a “very large market’’ that isn’t highly linked to the global economy, he said.

With the developed countries moving closer to a zero interest rate regime, investors will increasingly shift their focus toward emerging markets. “Investors will realise at one point: I am getting 1% or less with US treasuries and I can get 5–8% dividend yield on emerging market stocks. In addition to that fact that as people retrieve from the US dollar — because until now they had put everything into US treasuries — you will see the emerging market currencies begin to rebound again because some of them are undervalued,” he said. “As people begin to move out of US treasuries, as they begin to realise that the valuations in emerging markets are so good, one is going to see that move out into the emerging markets.”

On Govt. Bailout Packages:

According to Mark it is happening right now. He thinks that the stimulus packages announced in the US, in China, in India, in Russia, in Brazil, and in many other countries are going to have an incredible impact going into next year.

 "You must remember from the time that they announce a package to the time it is implemented is at least two–four months. So the effect will take place later. It will take place, as I said, in the first quarter. Then you are going to see some real fireworks I believe" , he said.