Veteran Emerging Markets Investor Mark Mobius expressed optimism about the Indian stock market and has said the Sensex could rise to the 1 lakh mark in the next five years.
Speaking to CNBC-TV18, Mobius, Chairman of Mobius Emerging Opportunities Fund, emphasized the necessity for India to expand its market size to attract greater capital inflow.
"One area where you can have a lot more size is the infrastructure sector if you do IPOs of various infrastructure projects, whether it be bridges, toll roads," Mobius. He further said that Railways as a sector has "incredible potential for growth."
He also highlighted the need for increased equity offerings, IPOs, and the listing of government enterprises to achieve this goal.
"A lot depends on the ability of Prime Minister Narendra Modi to reduce the amount of bureaucracy for people wanting to invest in India and willing to put money in the Indian market. That is something he would want to work on," he said.
Mobius also said that while India has substantial potential, a significant shift of funds from China to India has yet to materialize due to the disparity in market sizes.