New Delhi: It’s a Monday mayme for Indian stock markets. All the benchmark indices are in the red and have plummeted to new lows, mainly driven by losses in certain sectors like banking and IT stocks. The decline comes on back of inflation surge in United States torecord levels and sustained spike in global oil prices.
The BSE Sensex plunged over 1700 points and slipped below 53,000 levels while Nifty slumped over 400 points to breach below the 16,000 mark.
The bloobath in markets has wiped off at least Rs 6 lakh crore from the markets as the market cap of BSE listed dropped from Rs 252 lakh crore to Rs 246 lakh crore.
Foreign institutional investors (FIIs) were the big sellers in capital market, as they offloaded shares amounting to Rs 3,973.95 crore on Friday, revelaed exchange data.
What should investors do
The free-fall in markets has unnerved thousands of retail investors as they stand to lose their money significantly, parked in stocks. A lot of investors are getting jittery over the security of their investments. Biggest question at this time is as to what these retail investors could do at this time.
However, there are three options that the investors could explore
Don’t sell in panic
The reason behind the free-fall in markets is because of steep hike in inflation numbers in the US. The markets are also nervous about the upcoming US Fed Policy slated next week. The markets are worried that Fed might take some hard steps to control inflation and this in turn will affect the economic growth.
In such scenario, investors must not get driven by sudden shock in markets and should do due delibeation before exiting the markets.
Time to buy quality stocks
Severe dip in markets is also a time to handpick quality stocks, that may grow and add value to your portfolio over time.
Globally, markets are down and this could be an opportune time to pocket quality stocks in your kitty.
Time to rejig portfolio
Correction in markets is also an opportunity to make your own course correciton. By doing a rejig of the stocks in your portfolio, you could create a healthy mix of stocks and boost prospects.
You can exit from the volatile stocks and retain the bellweather ones that promise growth despite hiccups & volatility in markets.
