New Delhi: With a huge crash in the Indian stock market, the people who have invested and lost big money have expressed concern over the recovery. However, the stock market experts have reassured investors that this is just a course correction and the market will bounced back in near future.
“When market is going up, there is high level of confidence, but the market gets course correction, so they investors start worrying. In the last four to five years especially in India, the culture of equity investment has increased whether it was in stock or Mutual Funds. In the last 4-5 years, no one had seen a negative term. In such a period, there had been costumer queries how much more it is likely to fall further,” said Saurabh Jain, Chief Marketing Officer, Union Asset Management Company Private Limited, during a panel discussion on “The Art of Boosting Consumer Confidence in Challenging Times.
Understanding Current Stock Market Dip in India
Jain gave the example of COVID-19 and pre-2008 fall and said the market recovered sooner or later.
“If you see Covid and pre-2008 fall, there had been fall in the market and it has moved up sooner or later. So because of hand-holding, their behavior changed and they are able to stay. However, some uninformed investors who got good returns in the last few years. But unfortunately, when the market fall, there was no one to hand hold them. Some of them learnt the hard way that market is supposed to go negative,” added Jain.
He also said, “In the end, I would say that great price and good news doesn’t come together. You can either have a good price and a great news.”
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Another market expert Shrinivas Khanolkar, Head, Digital Marketing and Corporate Communication, Mirae Asset Investment Manager, also hinted at the market’s course correction and said volatility is the part of the market and it has to happen.
“For some years, our market was high compared to others and that a course correction has to come.
Volatility is the part of the market and it has to happen. I think it is the time when everybody should be talking to the investors and telling them that these are phases. And you have the history of 30 years to show what happened in those phases,” Khanolkar said.
“I would say that this is the best time to come to the market. When the market fell last time in October, people invested a lot, but now after this fall, there has been a quiet in the market. But as things improve, people will come back,” he added.
Indian stock market experts have reassured investors after a recent crash. They emphasise that this is a normal market correction, referencing past events like the 2008 financial crisis and the COVID-19 pandemic. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
