Cutting exposure to capital goods, industrial; waiting for IT to bottom out: Devina Mehra

economictimes.indiatimes.com:

Devina Mehra, Chairperson, MD & Founder,First Global, says: “Capital goods, industrial is now consensus trade. We went overweight on it in October 2021 when it was considered a dark sector. It took the market another two years to discover it. The Stocks have doubled, tripled, even quadrupled and we have been cutting exposure. We have been changing the stocks, but we do not hold as much as we used to, but we still are overweight. But that story may well get over in some quarters. On the other hand, the stocks which we still like are auto, pharma and some construction. While we are not hugely overweight on IT, we are waiting for it to bottom out. Sometime this year that will be the big opportunity.”

This comeback in the market has surprised everybody. From where we were in a turbulent March versus where we are in terms of May, benchmark indices have made a roaring comeback. Are you a bit surprised with this comeback in the market from the lows of March to the highs of May? Devina Mehra: My view on a one-two year basis has always been positive on the market, especially on the non-frothy end of it. That is what I said last time also. Yes, we were expecting a little bit of volatility, which we have seen. We are still a bit cautious on the very short term in terms of possible volatility. So, we are hedged on our portfolios, on our PMS, we are hedged so that is still the case. But as I said, we do not see any risk of a big crash. We are fairly positive in the medium term, so we have not made any cash calls. So, I mean,