Expert Devina Mehra Advocates Staying Invested as Markets Approach Bottom Range.

In a recent dialogue with ET Now, Devina Mehra, Founder and CMD of First Global, reiterated her perspective on the equity markets, asserting that they exist within a broader bottoming zone. Mehra emphasized the importance of maintaining a steady investment strategy rather than attempting to time the market aggressively. “We are around the bottom range,” she stated, suggesting that despite the uncertainty of immediate movement, investors should remain committed to their equity allocations. This consistent outlook over several months underscores her belief that staying invested is currently more advantageous than waiting for deeper market corrections.

When discussing sector-specific opportunities, Mehra indicated that her investment philosophy involves a quarterly reassessment of the landscape rather than adhering to long-term forecasts. Currently, she expressed a favorable stance on sectors such as capital goods, autos, and pharmaceuticals, having positioned her portfolio accordingly in recent years. Notably, the power sector, including generation and equipment, has begun to show promising visibility due to increasing demand from data centers, an area she finds particularly intriguing moving forward. This diversification strategy reflects her intent to capitalize on evolving market trends.

While addressing potential concerns regarding earnings growth and valuation, Mehra advised against relying solely on index-level Price-to-Earnings (PE) ratios. She highlighted that sector composition can significantly impact long-term evaluations, suggesting that many sectors are not overvalued based on historical standards. Although she noted that near-term disruptions due to geopolitical factors might influence earnings forecasts, her overall sentiment remains constructive. Furthermore, Mehra commented on the IT sector’s resilience amidst changing dynamics, recognizing the need for human involvement in technology despite AI advancements. This balanced perspective reveals her cautious optimism regarding the viability of the market trajectory moving forward.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)