What should investors do as markets swing? Keep calm and carry on, experts say.
The stock markets have been volatile, with benchmark indices down as much as 10% from their recent highs. The correction comes amid a record selloff by foreign investors, downgrades to corporate earnings, and slower economic growth.
Markets have recouped some of these losses in the recent trading sessions. So should investors stay put, increase their equity exposure, or cut their positions?
At the Mint Money Festival 2024, held on 22 November in Mumbai, market veterans shared their outlook and addressed several questions from investors. Here are some key talking points.
Foreign portfolio investors have net sold ₹1.16 trillion worth of Indian equities in the past three months. While near-term volatility from this is likely to continue, experts were all of the view that long-term investors should be greedy and look to buy the dip.
Nilesh Shah, group president & managing director of Kotak Mahindra Asset Management Company, said this may not be a good time to be a trader because of the high market volatility, but long-term investors should look to increase their equity exposure.
Also read | Mint Money Festival: Is it worth investing in cryptocurrencies, an unregulated asset class in India?
“We were the most admired story a few months ago, and while we are not in the most-hated zone, we are definitely in the neglected zone, so it is a great opportunity to rebuild. It is time to be greedy," said Sandeep Tandon, chief executive officer of Quant Mutual Fund.
Aashish P Somaiyaa, executive director & chief executive officer, White Oak Capital, said markets are likely to face more turbulence before things get back on track, but that he remains bullish on the Indian market’s long-term prospects.
Experts said the biggest risk is the
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