Ignore the noise, stay invested as consumption and GST reform markets: Devina Mehra

In the midst of a stream of headlines on GST, global rates, RBI movements and the upcoming US Fed Meeting, Devina Mehra, founder and CMD of First Global, says investors have to coordinate the noise and concentrate on Fundamentals.

Speaking with et now, Mehra said that although some developments such as GST reform or global trading rates directly influence the income of companies, a large part of the news cycle is temporary. “For investors there is just too much noise. Of course, certain events influence income and margins, such as raw price fluctuations or GST, but many other things fall into the category ‘This will also pass’,” she explained.

Consumption theme collects strength

According to Mehra, the consumption is steadily recovering from the post-Pandemic slump, helped by lower inflation and the relief of crude oil and food prices. “Consumption has been picking up the absolute depths of 2023–24 for about a year now. Inflation has generally fallen, and crude oil is cheaper, which benefits many industries,” she said.

First Global has been overweight on automatic components since the beginning of 2024, together with pharmaceutical and healthcare. In 2025, the company also increased exposure to FMCG shares. “We now have overweight FMCG, although the stock selection within the sector matters. Some names we have left, we have added some, but in general the theme looks strong,” Mehra noted.

She expects GST changes to give a further boost, although the disruption of the short term can delay the visibility of the profit. “I expected profit growth led by consumption in July-September, but with GST-related disruptions that could shift to the third quarter,” she said.

Market triggers: difficult to predict

Mehra warned against too many emphasizing triggers about whether the market can break out of its current reach. “Stories always follow what the market does. If you wait for a clear trigger, you will often miss the move,” she said, referring to the post-known bull run as an example in which liquidity profit was driven despite weak foundations. “If you were waiting for a correction to invest, you have already missed a rally of 3,000 points in the Nifty since February,” she noticed.

Gold, silver and worldwide diversification

On raw materials, Mehra advised investors to maintain a modest allocation to gold and silver as part of long -term diversification. “Gold and silver must be part of the allocation of assets, but not something like 25% of your portfolio. Never an assets class only because it recently did well,” she said.

Silver, she added, has both industrial and precious metal acceleration power, in particular because of its role in solar cells. She also emphasized the importance of overseas diversification. “The euro has risen by 15% against the rupid this year. The US is not the world – investors have to look at global opportunities outside the US,” Mehra said.

Note about the government -related sectors

While themes such as defense, infrastructure and power are popular, Mehra insisted carefully. “Large government assignments look positive in headlines, but implementation risk and delayed payments are constant problems. The margins are slim as contracts to the lowest bidder and working capital often gets stuck,” she explained.

She quoted examples such as the Bandra-Worli Sea Link project, where the contractor encountered financial problems due to delayed payments. “Investors must look beyond order books and factors in the risk of cost overruns and delays of the cash flow,” she said.

Still underweight on the financial data

On financial data, Mehra said that First Global has a relatively smaller exposure despite the heavy weight of the sector in benchmarks. “We are still underweight, although less underweight than before. After years of underperformance we added some positions in 2025,” she said.

However, she marked risks surrounding the rising debts of households and the delay of credit growth. “The indicators for household debt are not very healthy and the savings interest are under pressure. Banks in the public sector did better than private sector, but the risk remains,” she warned.

Balanced but targeted approach

Mehra recommends that investors must maintain discipline and avoid responding to short -term news. “No theme lasts forever, and nobody has visibility for a few years. But staying invested, diversifying worldwide, and not haunting fads remain the best approach,” she said.