NEW DELHI: Emerging markets (EMs), including India, have already seen outflows of over $50 billion but could bounce back sharply when volatility subsides, says Mark Mobius, executive chairman at Templeton Emerging Markets Group.

Mobius said he was looking to diversify his India portfolio, with a mix of commodities-oriented, export-oriented and domestic companies. He likes Infosys, TCS, Dr Reddy's, RIL and ONGC.

"These companies will continue to do very well, if you expect the currency to weaken further. These export-oriented or dollar earner companies should do well. And, lower oil prices will help; companies which are refining will do very well in India," Mobius told ET Now in an interview. 

David Fuller's view

I agree with Mobius and here are charts of the shares that he mentions: Infosys is a top-performing IT consulting and software services company (est p/e 18.95 & yield 2.03%) according to Bloomberg; Tata Consultancy Services is another diversified IT services company (est p/e 20.79 & yield 1.55%); Dr Reddy’s Laboratories is a leading pharmaceutical services company (est p/e 25.89 & yield 0.50%); Reliance Industries is in the currently out of favour petrochemicals and synthetic fibers sector (est p/e 10.90 & yield 1.15); Oil & Natural Gas in is an even more out of favour sector (est p/e 8.02 & yield 4.14%). 

In summary, Mobius has listed three fashionable, outstanding performers which are unlikely to buckle now, assuming the global stock market correction is largely over.  The last two are medium to longer-term recover candidates.

(See also Monday’s comment on India.)