Devina Mehra Says Recent Market Volatility Is 'Overdone'
India will continue its outperforming streak after coming out of a long period of underperformance, says Mehra of First Global.
Despite the recent volatility and a "disastrous 2022", Devina Mehra of First Global remains upbeat on equities.
"From a longer term perspective, I remain positive on equities globally. On top of that, India looks like it will continue its outperforming streak after coming out of a long period of underperformance, relative to its peers and global markets," Mehra, chairperson and managing director of First Global, told BQ Prime's Niraj Shah.
As far as global asset markets are concerned, 2022 was a "particularly bad year", she said. "Bond and stocks together being down happened during The Great Depression, during the Second World War, 1969, and then 2022."
According to her, such years tend to be an exception. "So, hoping 2023 will be better. As far as recent volatility is concerned, as with all such things, in the short-term, the reaction is always overdone. If you look at the Russia-Ukraine war, India's markets fell 5%."
Referring to the recent drawdown in Adani Group stocks, she said that banks that don't even have exposure to the group also fell, so the reaction is "always overdone" on this front.
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Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
