Emerging markets advisor Mark Mobius'' view on India

After the nearly 20 per cent correction in June, most indices have trekked upwards. In an exclusive to CNBC-TV18 interview, emerging market guru and CIO of Templeton Asset Management, Mark Mobius gives his views on emerging markets.

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.

Mobius is focusing on the mid cap and small cap companies in India. He aims to launch a small cap fund in November, which would also focus on Indian companies. He also adds that he is focussing on commodities and consumer-oriented stocks.

"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 is underweight on India in the BRIC Fund compared to others due to valuation concerns. "We have an underweight position on India relative to Russia, Brazil and China. Brazil is the largest, followed by China, Russia and India. We are looking for the day when valuations come down and we can buy in and get a big exposure in India," he added.