Don’t panic, wait for stock markets to stabilise: Experts

 

 

 

DALAL Street witnessed a blood bath on Monday with the Sensex nose diving by 2,222.55 points to settle at 78,759.40 and Nifty falling by 662.10 points to settle at 24,055.60, which severely affectedinvestorsentiments to turn from positive to negative. Experts in the market feel that this crash offers a lucrative opportunity to buy shares at lower valuations and create wealth over a period of time. They suggest investors to remain calm and not panic or sell their portfolio’s in haste as this sell-off has a limited down side from current levels.

 

“During times of huge selloff or uncertainity investors should not panic but remain calm till the markets stabilise. Every steep correction in the stock markets should be utilised as a buying opportunity to accumulate shares at cheaper valuations,” said CA Kailash Jogani. He strongly advised investors, speculators and traders to stay away from penny stocks, mid caps and F&O segment as they might suffer heavy losses. Anuj Badjate, Managing Director of Badjate Stock & Shares Pvt Ltd sees this fall as a healthy correction for the markets. He advises investors tobuyinsmallquantities to get those battered down stocks at lower valuations.Forinvestors already invested in the market to buy and average their portfoliosif theyheldqualitystocks. Another expert, CA Julfesh Shah expects thestockmarkets to stabiliseby end of thisweek. There could be further correction for another fewdays.After that themarketscouldwitness a fast rebound.

 

“The Indian growth story is stillintact as themonthly average GSMmop is strong,Union Budget favourable for theeconomy,companyresults are good and no liquidity problems in the market,” he said. Shah was confident that the domestic stockmarketswould climb to a fresh all time high by end of this year. This could be possible as domestic institutional investors, MFs, HNIs, and retail investors flush with funds are regularly investing in the stock markets. Also, FIIs will stay invested in domestic equities as they see high growth in the economy. All these factors would lift the markets, he pointed out. The market crash was triggered in the US with data indicating slump in jobs creation, slowdown in manufacturing and thefearof goingintorecession; Japanese stock market crash and geo-political tensions in the Middle East. CA Dr TSRawal, a wellknown economist suggested that investors should consider this downtrend as a buying opportunity togethigh returns. He sees limited downfall from current levels. Suggesting investors shouldbuybluechip companies