Devina Mehra, Founder and CMD of First Global, believes the current market weakness could create long-term opportunities for investors. According to reports from ET Now, Mehra cited historical data showing that when markets remained flat for nearly two years in the -2% range, they typically delivered 25% returns in the following year. However, she emphasized that such patterns should be viewed as probabilities rather than predictions, given the wide range of potential outcomes. As per ET Now, Mehra noted that "It is when there is fear and people thinking of stopping their SIPs that the next period returns are above normal." She also cautioned investors against putting their entire portfolio into equities, stating that "I have said never have 100% of your portfolio in equities because equity markets are inherently unpredictable."
As reported by ET Now, First Global currently maintains higher-than-usual exposure to the banking sector, though Mehra remains cautious about lenders. The firm has maintained overweight positions in pharma and auto components for more than two years, with Mehra noting that pharma valuations remain attractive despite not being at super low levels, while auto components look better than automobile manufacturers themselves. The firm also holds exposure to capital goods, chemicals, and other sectors, with power-related stocks having looked attractive in previous quarters. According to ET Now, Mehra stated that "Banking I mean we hold more than what we normally do but it is not like I wouldn't call it a table thumping."
According to ET Now reports, Mehra does not believe the IT services industry is headed for structural collapse despite facing challenges. She noted that Indian IT companies have repeatedly adapted to technology changes, from Y2K to cloud, digitisation and software-as-a-service. However, she expressed concern about the impact on employment, stating that IT and IT-enabled services have driven employment for the last 25 years, and India is not currently utilizing its demographic dividend effectively. She emphasized this as a bigger concern than the future of IT services companies themselves, as reported by ET Now.
As reported by ET Now, Mehra expressed caution about India's consumption story, particularly noting that rural demand faces pressure from a weak monsoon. She disagreed with arguments that strong iPhone sales indicate a healthy Indian economy, stating that most iPhones are sold on credit and represent a super high premium segment. According to ET Now, the firm holds some FMCG stocks but remains cautious about the broader consumption space due to weak aggregate data. Mehra noted that valuations across several sectors were not at extreme levels even before the recent market correction, suggesting the current weakness may have created more attractive entry points for investors.
According to ET Now reports, First Global conducts a major portfolio rebalance every quarter and evaluates holdings from a fresh starting point rather than seeking justifications to continue existing investments. Mehra emphasized the firm's philosophy: "Anything you will not buy today you should not hold", while noting that the overall portfolio pattern has not undergone major changes recently, though individual stocks have been adjusted from time to time. The firm's approach reflects a disciplined investment philosophy that prioritizes current market conditions and valuations over historical positions.
