New Delhi: Stock Market has been falling for the last few days. The benchmark indices Sensex and Nifty continued to decline on February 12, 2025, Wednesday. The 30-share barometer was trading 525 points down at 75,768.18 while the broader Nifty traded 142 points lower at 22,929.80 at around 11:30 am.
Experts are of the view that the continuous selling by foreign institutional investors and international trade war fears because of US President Donald Trump’s tariff imposition threats and announcements have unnerved the investors.
Strategies for Averaging Down in a Bear Market
Indian stock market data shows that a huge number of investors are new to the market and don’t have enough experience of a long Bear run. Thus, an individual should take note about the performance of a stock, especially when it has been a consistent performer for many years but at present declined. In this scenario, the shareholders should do some contemplation, like the reasons behind the drop in the prices and whether the counter has actually plunged or dropped just because of the market fluctuation and has the potential to become stable again.
Seasoned market experts have maintained that an investor should always study the past performances and financials of the stocks before buying. If a share of a company, which has a great balance sheet, and generally performs well but is down currently, can be considered to be purchased at a cheaper price with the hope of getting good returns later.
Stocks of companies, which regularly post good financial results, generally perform well. So, if a shareholder possesses counters of such a firm, can opt to buy more on dips which helps in lowering the average cost of investment.
(Disclaimer: Please take advice from your financial advisor before taking any decision as Mutual fund and stock investments are subject to market risks. This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
The recent decline in the Sensex and Nifty indices, fueled by FII selling and global trade uncertainties, has left many investors worried. This article advises investors to analyse individual stock performance, focusing on companies with strong fundamentals even amidst market fluctuations. Buying on dips to lower average investment cost and focusing on long-term value investing are key strategies discussed. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
