It was the worst day of trading in the history of our markets. The Sensex saw its biggest ever fall ever of over 2000 points. During the course of the day it went below the 17,000 mark while the Nifty dipped below the 5000 mark. Sensex shut shop for the day down 1,408.35 points or 7.41% at 17605.35, and the Nifty ended the day down 496.50 points or 8.70% at 5208.80.
Panic selling was seen across sectors. If investors are confused about their next market move, help is at hand. Speaking exclusively to CNBC-TV18, Vallabh Bhansali of Enam and Girish Nadkarni of Avendus Advisors chalk out strategies that investors could now adopt.
Vallabh Bhansali,Chairman, Enam said, “At these levels, the markets have become attractive again as the fundamentals have not changed. That’s what the investors should think of, the fundamentals haven't changed at all, valuations have become reasonable. That’s the way to look at it.”
Meanwhile, Girish Nadkarni of Avendus Advisors believes that it’s mainly the primary market offerings have led to the secondary market liquidation and that from a retail perspective, it's always good to buy in panic rather than sell in panic.
Nadkarni believes that markets can come off from these levels. He said that the global situation is draining liquidity away from markets. Results-wise also, there aren't any significant outperformers. So it's going to be a function of liquidity, going forward. All these factors will have an impact on Indian markets, he added.
"From a retail perspective it is always good to buy in panic or rather than sell in panic. While the overall index is down by 2-3% there are stocks, which are down by 10-12%, and therefore there could be some value buying especially among the midcaps in sectors that one is bullish about and may not be today but I guess from a retail perspective it is important to keep a watch on the midcap stocks, which have fallen significantly more than the market and look for value buying at the lower levels maybe sometimes later in this week if the valuations do seem attractive," Nadkarni said.
According to Raamdeo Agrawal, Director & Co-Founder, Motilal Oswal Securities it’s really a question of knowing your companies. “I would not look for new names today but would rather buy the companies which are in my portfolio and where the corrections happened deeply,” he explained.
“If I am holding them in any case, I consider them as a worthy of investment even at earlier prices. So today at 20-25% lower, clearly they must be good companies. So I would rather look into own portfolio,” he explained.
Agrawal said that in a correction like today’s, he would rather gather courage and go and put whatever little incremental money he has in those kinds of stocks rather than trying to find completely new stocks and start a new story.
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