US DOJ had no business prosecuting Adani: Mark Mobius

Mark Mobius, Chairman of Mobius Emerging Opportunities Fund, criticised the US Justice Department's (DOJ) involvement in prosecuting Indian firms, particularly the Adani Group. He stated in an interview with The Economic Times that their efforts lack jurisdiction and evidence, adding, "The Justice Department in the US has no business prosecuting an Indian company." Mobius urged a review of concrete evidence before forming conclusions.

"… I think the Justice Department in the US probably overstepped its bounds. It has gone too far. And by the way, with the introduction of Trump, a lot of the work of the Justice Department going overseas to prosecute companies around the world is going to come down. They are going to be cutting that kind of work. The other thing, of course, is that we have to look at the evidence. Where is the evidence? And a lot of it is hearsay, but we have to look at the actual evidence. So, I would not condemn Adani immediately. I would first want to see evidence. And besides, the Justice Department in the US really has no business prosecuting an Indian company," Mobius said in the interview.

Would Mobius invest in the Adani Group?

On the Adani Group, he expressed interest in their infrastructure and power sectors, citing their global expertise. However, he admitted to missing out on buying the stocks after their recent dip.

When asked what verticals of the Adani Group he finds the most valuable, Mobius said, "Probably on the infrastructure side, because that is where they have an incredible expertise and global view. Power and infrastructure would probably be most interesting at this stage."

India’s infrastructure and telecom: A bright future

Mobius voiced optimism about India's telecom sector, driven by growing demand and technological advancements. He owns shares in Bharti Airtel and Vodafone Idea, highlighting their potential in an expanding market.

Regarding small- and mid-cap stocks, Mobius noted their high valuations but attributed this to anticipated index inclusions. He explained that their limited coverage by brokers presents opportunities for early investors.

On synchronised market rallies, Mobius linked the trend to the surge in US money supply post-COVID-19, driving investments across assets. He warned, however, that the effects of monetary tightening would surface later.

Global market trends and a Santa gift

Mobius remained optimistic about India, particularly in semiconductor manufacturing, recommending stocks in this sector for 2025. For a festive pick, he suggested Newgen Software as a company worth exploring, while cautioning there were no guarantees.