A Steep Correction In Stock Market And FII Selling Leaves Retail Investors In A Lurch

Stock markets crash! Since touching all-time highs on September 26 this year, the NSE Nifty has fallen by 10.2%. Analysts warn that the 50-stock Nifty can fall another 10% by this year-end to push India into bear market. Typically, a fall of 10% is termed as a ‘correction’, while a 20% drop from the peak is called a ‘bear’ market. The reasons include merciless selling by foreign institutional investors (FIIs) who are moving money to China, the increase in consumer inflation in India and the consequent dimming of rate cut hopes. The story will focus on what investors, particularly the millions of first-time entrants to the Indian stock markets, should do in a highly volatile stock market environment?