The Indian equity market experienced further declines as the Nifty index extended its unprecedented losing streak to ten consecutive sessions. Closing at 22,083, the Nifty fell by 37 points while the Sensex dropped by 96 points to settle at 72,990. The stock market has been in decline since hitting a record high in September, experiencing a correction of almost 16%. Given the ongoing market volatility, investors are currently seeking opportunities to make informed investment decisions.
In view of the recent downfall in the stocks, market expert, trading coach and mentor Stock Market Scientist took to social media platform X said that investors who are there to see a long-term profit must not panic with this market correction.
"Pain is inevitable suffering is optional. This is for all my fellow friends in capital market journey. A short note that might help you... If your goal is to be there in the market for 15-20 years then it's just the initial phase where learning exceeds earning... Check what went wrong & take corrective action... everything will better gradually as we move towards the end of this year... If you don't correct your mistakes then you won't be able to perform better in the next up cycle. Study hard & be in a good circle where people talk more about microeconomics & psychology to build good mental strength... Look for solutions not problems. This is not only applicable for stock market but also for other parts of life...," he wrote on X on Tuesday.
Many experts have been speaking about how to manage market correction and deal with the recent crash in stock prices.
Earlier this week, Zerodha CEO Nithin Kamath emphasized that the current market correction is the first significant one for investors who began investing post the Covid-19 pandemic. He stated, "Markets follow a cyclical pattern, and considering the rapid rise in our markets since late 2020, this downturn was expected."
Kamath cautioned investors against halting SIPs, leveraging, and panicking, emphasizing these as three mistakes to avoid.
"In 2020, large, mid, and small caps fell by 25-40% but then rose by 200-400%. If you had panicked, you would have missed the rebound. As long as you invest regularly in the right funds, diversify, and stay disciplined, your chances of long-term success are high," Kamath said on social media platform X.
According to Kamath, the increase in the number of investors halting their SIPs is concerning, as this strategy allows for the averaging of investments across different market cycles. Despite uncertainties surrounding the quality of data, Kamath emphasized the importance of staying disciplined and diversified in the face of market downturns.
Reflecting on the market crash of 2020, Kamath highlighted the significance of consistently investing in the right funds to achieve long-term success.
Additionally, he cautioned against leveraging investments and advised against making impulsive decisions during volatile market conditions.
“There's no shortage of businesses triggering you to borrow money to invest etc., but that's a bad idea. I've no idea where the markets go from here, and neither does anyone. What I do know is panicking now is the wrong thing to do, and you can get pushed to panic if you have borrowed,” he wrote.
Kamath advised investors to focus on consistent monthly investments and maintaining a balanced perspective on life, rather than succumbing to pessimism in the market.
Recently, he expressed concern about the current market correction, noting a significant decrease in trading activity and volumes. This, coupled with a market-specific circular, has resulted in a rare decline in Zerodha's growth trajectory.