Both the Sensex and Nifty have declined more than 10% from their peaks, thanks mainly to FII selloff due a variety of factors such as China economic recovery stimulus, falling value of the rupee against the dollar, the bullishness of the investor markets in the US after the victory of Donald Trump etc, weak Q2 earnings data from India Inc and all these coming after prolonged concerns of overstretched valuations.
Some Indian experts feel that the selling pressure will remain for some more time and the broader indices could tank a bit more. However, on different platforms they are advising retail investors not to indulge in any knee-jerk selling, but to remain calm. Let’s hear, what they are saying.
Stock Market crash: ‘Remain Fully invested’
“For those who invest their savings in equities, they should stay fully invested and not try to time the markets. I’ve seen this approach work brilliantly over the past 45 years…. Once they (FIIs) exit India, the price for reentry will be much higher, and maybe when they come back, the Nifty index will reach 30,000,” ace investor and co-founder of Motilal Oswal, Ramdeo Agrawal said at a recent event.
Expect a 10-15-fold increase in the next 20 years
“If we don’t see a 10-15 fold increase in the next 20 years, I’ll be surprised. We’re on a take-off trajectory,” Manish Chokhani, director, Enam Holdings told the media. His advice to Indian investors: Have faith in the market’s long-term potential and if you have exited, re-enter at entry points that you feel is conducive. He pointed out the Indian market size ballooned from $200 billion in 1999 to over $5 trillion now – a rise of 2,500 times.
‘Don’t panic during stock market correction’
“I want to reassure you that this is not a time to panic. Market corrections are not only common but also essential phases in any long-term growth cycle…. Historically, markets have endured similar corrections almost every year, only to rebound stronger. In fact, despite facing similar declines in previous years, the market has consistently delivered solid long-term returns, with an impressive compound annual growth rate (CAGR) of 14.31% from January 2014 to the present,” Jimeet Modi, CEO, Samco Ventures was quoted saying in the media.
Stock Market going down: ‘Remain invested’ in quality stocks and MF schemes
“The Sensex could move even lower to around 72,000-73,000 levels. But this is the time to remain invested and, if possible, invest in select stocks of mutual funds. One could perhaps consider investing in MF schemes that invest in precious metals. But this is not the time to mimic the FIIs and exit at all. Re-entering at a later stage could be far costlier,” said Prasunjit Mukherjee, CEO, Plexus Management Services.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Stock Market crash: After an unprecedented bull run, the stock markets are on a correction mode. But experts are advising retail investors to stay calm and not to exit the market. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
