Devina Mehra: IT Services, Not Index Calls, Drive 2026 Amid Currency & Policy Risks

• Devina Mehra of First Global advises investors to prioritize sectoral themes like IT services over index targets for 2026, citing currency and policy risks.
• IT services are identified as a potential recovery sector in 2026 after years of underperformance, drawing parallels to the recent turnaround of PSU banks.
• Mehra emphasizes that currency movements, policy actions (tariffs, GST), and sector-specific cycles are more crucial than headline indices for market prediction.
• First Global's portfolio has been overweight in auto components and autos (good run in 2025), and pharma (paused, now recovering), with recent additions in OMCs, FMCG, and PSU banks.
• She highlights the rupee's depreciation against the euro (20%) and its impact on education costs abroad, as well as the role of currency in the commodity rally.

Why It Matters: Devina Mehra advises investors to focus on IT services and sectoral themes for 2026, not index calls.