India in a sweet spot and may continue to outperform: Devina Mehra

The outperformance of the Indian market may continue in 2023, however, the sectoral trends may change, said Devina Mehra, Chairperson & MD, First Global.

In an interview with ET Now, Mehra said: "India is now in a sweet spot where I expect it to continue to outperform. It will be a selective market like it was in 2022 and the sectors may not be exactly the same but one has to keep an eye on that."

"My base case is that India should give positive returns. I do not see a big risk just now of at least big drawdowns in equity either in India and also in most parts of the world," said Mehra.

Mehra said that the outperformance of the domestic market began in 2021 after many years of underperformance and since it is not at extremes.

Mehra pointed out that globally, out of 42 indices, India used to be in 24, 25 or 22 positions. "2021 was the first year when it moved to number 13. In 2022, it was number 10, down 4.7 percent in dollar terms, but still outperforming because global aggregates were down about 18 and odd precent," said Mehra.

Mehra said she was overweight on the IT sector earlier but now she is slightly underweight on the sector.

"Fundamentally, I do not see anything greatly wrong with the IT sector still but, we might be like market weight to slightly underweight," said Mehra.