Markets Likely Near Bottom Range; Stay Invested: Devina Mehra
Indian equity markets may be close to their bottom range, according to Devina Mehra, Chairperson and Managing Director of First Global. She advises investors to stay invested and not panic during the current volatility. Mehra believes the worst of the downturn could be behind us, with 2026 shaping up to be a stronger year than 2025.
What Does “Bottoming Zone” Mean for Investors?
A bottoming zone is a price range where a market stops falling and starts to stabilize. It does not mean prices will immediately rise. Instead, it suggests that the selling pressure is easing and the market is finding a floor. For investors, this is often a time to hold steady rather than sell in fear. Mehra’s view is that the current levels offer a reasonable entry point for long-term investors.
For example, if a stock falls from Rs 500 to Rs 300, a bottoming zone might be between Rs 280 and Rs 320. In this range, the stock may move sideways for weeks or months before recovering. Mehra’s advice is to remain invested during this phase to capture the eventual upside.
Why 2026 Could Be Better Than 2025
Mehra expects 2026 to be a more favorable year for Indian equities. She points to sector rotation as a key driver. Sector rotation means money moves from one industry to another as economic conditions change. For instance, if technology stocks underperform, funds may shift to power or infrastructure stocks. This rotation can create opportunities even in a slow market.
She also notes that earnings disruptions are real but temporary. Many companies have faced headwinds from global slowdown, high input costs, or regulatory changes. However, Mehra remains constructive on the overall market. She believes these disruptions are part of a normal business cycle and not a sign of a long-term decline.
Power Sector: A Key Growth Area
Mehra identifies the power sector as a major growth area. India’s electricity demand is rising due to industrialization, urbanization, and electric vehicle adoption. The government’s push for renewable energy also supports this trend. Companies involved in power generation, transmission, and equipment manufacturing could benefit.
For example, a power utility company expanding its solar capacity may see higher revenues and profits over the next few years. Investors looking for stable growth might consider this sector as part of a diversified portfolio.
The IT Sector: Evolving, Not Dead
Many investors worry about the IT sector due to global tech slowdown and AI disruption. Mehra disagrees with the view that IT is dying. She calls it an evolving sector. Indian IT companies are adapting by investing in AI, cloud computing, and digital services. They are not just doing basic coding work anymore.
For instance, a major IT firm might now offer AI-driven analytics for retail clients. This shift can open new revenue streams. Mehra advises against writing off the sector entirely. Instead, she suggests looking for companies that are innovating and staying relevant.
What Should Investors Do Now?
Mehra’s core message is simple: stay invested. Trying to time the market perfectly is very difficult. Even if the market falls a bit more, selling now could mean missing the recovery. She recommends focusing on quality stocks in sectors like power and selective IT firms. Diversification across industries can also reduce risk.
For example, an investor with a portfolio of 10 stocks might hold 3 in power, 2 in IT, 2 in banking, and 3 in other sectors. This mix can help weather sector-specific downturns. Mehra’s outlook is cautiously optimistic. She sees the current phase as a buying opportunity for patient investors.
Conclusion
Devina Mehra of First Global believes Indian markets are near a bottom, with 2026 offering better prospects. She advises staying invested, focusing on power sector growth, and not giving up on IT stocks. While earnings disruptions exist, they are temporary. For general investors, the key takeaway is to remain calm, stay diversified, and think long-term.
