This story is from October 19, 2007

Long-term bull run is intact, say experts

Sherna D'Mello / TNN / Oct 19, 2007, 01:17 IST

Share

AA

Text Size

Small
Medium
Large

Despite the market fluctuations there's good news for investors, even the ones who got in a bit late.

Long-term bull run is intact, say experts

MUMBAI: Less than a week ago the market seemed to be headed in just one direction: Up. Milestones were being crossed every week and fund inflows had touched record levels. From the stories doing the rounds, everyone from your boss to the neighbourhood paanwalla was making money. Amid all euphoria quite a few retail investors decided to invest in the markets.
But beginning Wednesday the BSE sensex has gone though two volatile trading sessions.
The sensex swung about 1,500 points each day and made investors poorer by Rs 2.7 lakh crore. It's unnerving for any investor, and particularly for the late entrants to find the value of their stock portfolio declining so rapidly. So what should the retail investor do during this time?
The most important advice is don't panic. Despite the market fluctuations there's good news for investors, even the ones who got in a bit late. Market experts say the underlying fundamentals are still strong and nothing has changed on that front. The markets are reacting to an event, in this case the Sebi circular on PNs. But the long-term India growth story is intact and investors should stay put if they have a medium to long-term view.

"The long-term bull phase is intact and if you entered the markets with a six-month view or longer, stay invested," said Milind Pradhan, head of equities, UTI Securities. "If you're looking to enter the markets however, wait for the volatility to reduce. I expect the markets to bottom out at around 17,000 levels. And when making fresh committments, invest with a long-term view. With current volatility it's hard for traders to make money," Pradhan added.
Some experts however say the sudden dips are also a good opportunity to buy stocks. "The long-term investor should pick up quality blue-chip stocks. Look at stocks focused on Indian economic growth, sectors like infrastructure and financial services," said Seshadri Bharathan director, stock broking, Dawnay Day AV Securities. Even if you've invested at higher levels, buying now would lower your average purchase price, giving you higher returns in the long run.

End of Article

FOLLOW US ON SOCIAL MEDIA