India will outperform and here are 3 sectors where weightage has gone up: Devina Mehra

economictimes.indiatimes.com:

Devina Mehra, Chairperson & MD, First Global, says “in March end, I had said this is the time to get in, when the index was sub 17,000. It has obviously run up from there. There might be a pause, there might be some correction here and there, but the broad trend still remains.

We still like equities globally. We still think India will outperform.”Fitch has downgraded the US outlook. Their view is not having an impact on global markets per se. Do you think both global and Indian markets should ignore the latest rating change from Fitch?As far as the rating change is concerned, it was not new information for the market.

The rating does not really matter in the sense the issues that it referred to were already well known in the markets, whether the debt ceiling, which has not happened for the first time and obviously the debt to GDP is high. The deficits are high, which is, of course, separate from the ratings. This is the part that is at the back of the mind.

We are a little worried that the current account deficit and the fiscal deficit in the US and the twin deficits remain high. But none of the issues themselves were new news for the market, which is why probably it reacted a bit here and there but broadly, it was already known. The fact is that even as we speak, if you talk of a global risk-free instrument, there is still no instrument which comes anywhere close to US treasuries in the minds of the world because what is the alternative? Do you want to buy a China treasury? And as far as even Europe is concerned, while they have navigated 25 years better than I thought they would, there are a lot of disparate elements that are being managed in terms of very different economies, very different fiscal situations.