India near bottom of global rankings, but that’s exactly why to stay invested: Devina Mehra

India’s stock market ranks near the bottom of global indices, but that’s a buy signal, not a warning, according to Devina Mehra, founder and managing director of First Global, which manages funds worth ₹208.17 crore as of May 31, 2026.Mehra said her firm tracks 42 major global indices, and India currently ranks 38th or 39th. Markets in that position often swing to the top of the rankings soon after, she said, citing Sri Lanka, Turkey and Russia as recent examples.

She pushed back on the idea that India is lagging simply because it lacks AI-linked stocks, noting that in the US, gains have spread well beyond tech — the Russell 2000 has more than doubled the S&P 500’s returns this year, and even the Dow Jones Transportation Index is up 30%.
Mehra also said India’s rally has broadened meaningfully from 2025, when more than half of stocks fell even as most indices rose. Now, over 50% of stocks are outperforming the market, up from as low as 12-15% last year.Mehra maintained her bubble warning on artificial intelligence (AI), saying the question isn’t whether AI transforms the world, but whether investors profit from it. She compared the buildout to past tech booms that became a graveyard for investors and warned that AI hardware has little resale value if companies fail. She estimated AI hyperscalers will spend close to $1 trillion this year, versus $150 billion two years ago — a pace she called unsustainable.

First Global remains overweight on pharma, auto components and capital goods, with recent additions in power equipment, while continuing to hold IT services stocks despite the AI disruption narrative.

For the full interview, watch the accompanying video

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