India's NSE index fell nearly 2 percent on Monday to its lowest close in 11 months, as blue chips slumped after a record low rupee aided fears of foreign selling and more steps by the central bank to stem dollar outflows.
Mobius, who manages $53 billion, said he "likes and holds" Tata Consultancy Services and would add to positions if the stock fell 10 to 15 percent further. From the consumer sector perspective, Mobius said he would buy Hindustan Lever – a stock that he currently doesn't own – if it fell 20 percent further.
(Read more: Four reasons not to 'throw in the towel 'for India)
More pressure is in store for India's currency, Mobius warned. "With the U.S. dollar getting stronger, the rupee could get hit further," he said, adding "significant declines" may be on the horizon unless controls were imposed to limit capital outflows.
India is "moving definitely in that direction but I hope common sense prevails," Mobius said of the risk of further restrictions on foreign investors aimed at preventing them from moving funds out of the country.
(Read more: This market may be a 'slow moving train wreck')
Broadly, emerging markets might look cheap on a valuation basis but timing the right entry point will continue to be a risk-fraught proposition, Bill Maldonado, CIO for Asia-Pacific at HSBC Global Asset Management told CNBC's 'Squwak Box' on Wednesday.
The last time emerging markets priced this cheaply relative to the developed world was 2002, Maldonado explained. "Stuff looks cheap, it looks really good, it looks profitable. Many Indian companies are extremely well-run companies (with) really good capital discipline, very good planning. And they just keep getting cheaper," he said.
"The timing question has kind of gone out the window," he added. "You're trying to call a major turn in the market here and that's always an extremely difficult thing to do. So the only policy really is to accumulate on weakness."