Market not in dangerous territory: First Global

Devina Mehra, Chairperson and Managing Director of First Global, on Friday said that the market is not in dangerous territory.

The Sensex scaled 60,000 for the first time in a historic rally powered by heavyweights such as TCS, HDFC Bank, and more. Moreover, the Nifty50 is moving towards 18,000 having closed today at 17,853.

“On the market as a whole, given the history of returns, we are not really in danger territory, if you look at rolling returns because till the beginning of 2020, there was a very long period when you had not even met fixed deposit return and for 5-years, in fact, not even met savings deposit rates. So there was that room which had been created for the market to go up,” Mehra said in an interview to CNBC-TV18.

“There is not any great danger of a big bear market, which is true not just of the broad market, but smallcaps pretty much has the same story. However, when I say no big risk of a big bear market doesn't mean that there cannot be significant corrections because, in any mood, there can be significant corrections,” she said.

On investment, Mehra said, “We still have chemicals fairly high up. IT is probably the highest; it's not outsized, but it is the highest and not just IT services but certain other segments of technology because this was a trade that we identified last year when FMCG was the flavour of the season and I had said that this is another industry where you have a fairly stable prospect, decent margins, returns, but the valuations were a fraction of what FMCG is used to trade at. So there has been some rerating plus, it's a dollar hedge, it's more predictable. So it’s a nice space to be in.”

For the entire interview, watch the video