The picture of the stock market has changed in a few months. By the end of September, the market was making new records of growth every day. Now the markets are in the headlines due to daily decline. Experts say that investors are examined during the market declining Nifty 50 has fallen by about 16 percent from its all -time high levels. The midcap index and smallcap index have fallen by 22 percent and 25 percent from their respective peaks of December 2024 respectively. A lot has happened in the market in six months. By September 2024, new records were being made in Indian markets. However, after this, the market started unilaterally. Every company shares, whether big or small, fell. Due to this selling, the Nifty 50 has fallen by about 16 percent from its all -time high levels. The midcap index and smallcap index have fallen by 22 percent and 25 percent from their respective peaks of December 2024 respectively. This has shocked the portfolio of investors.
The major decline tests the investor’s patience.
During the major decline in the market, the patience of big investors is tested. This indicates the number of SIP cancellation. The question is, what should investors do in such a decline? There is no one answer to this question, but the advice of experts who have seen many falls can be useful for you.
Honor allocation should be focused on allocation
On 28 February, Mihir Vora of Trust Mutual Fund told in a conversation with CNBC-TV18 what investors should do during the major decline in the market. He said, “First, your investment plan should be concrete and should be according to your asset allocation plan. It is difficult for traders, but as far as investors are concerned, they do not have to worry as long as investors focus on their asset allocation, they do not need to worry.” He also talked about risk control as there are some restrictions with some asset classes, according to which changes in asset allocation are necessary.
Chance to buy falling shares at cheap prices
He said, “You don’t need to be worried about ups and downs. Many times people change their investment plans due to these ups and downs. But, it is not right to do so, because the ups and downs are the nature of the market. You have to maintain discipline.” He said that if a stock falls up to 50 percent, it means that it has become much cheaper. You can take advantage of this opportunity in two ways. First of all, you can buy that stock at a cheap price. Second, you can exclude the shares from your portfolio that increased in the previous boom.
Weak shares can be removed from portfolio
PSU shares have also declined a major decline. The market capitalization of the Nifty PSE index has reduced by Rs 25 lakh crore from its peak of August 1 last year. The shares of most public undertakings have declined by 20 to 60 percent from their all -time highest levels. He said, “Now the portfolio has only a few defense stocks and we have full faith in them.” Vora believes that apart from public sector undertakings, banks and NBFCs can also be betted, as they are expected to improve after two years of poor performance. They also look attractive in terms of evaluation and development possibilities.
It is better to stay away from these areas.
Despite this decline, there will be some shares that investors and fund managers would like to maintain distance. According to Vora, it is beneficial to stay away from FMCG, utilities, global commodities and metals. He said, “We are focusing on income growth and visibility of income, because we are development investors by nature. We believe that these areas are more cyclical or low growth by nature.”