The surprise move by the Reserve Bank of India (RBI) is not being praised by the general public or the investor community. On the one hand it has left the common man wondering whether EMIs would rise and on the other hand has made investors extremely worried about their money invested in the stock markets.
Amid the volatility, investors are left perplexed and scared and all market experts, The Pioneer approached, are advising retail investors to be extremely cautious while trading in the stock markets.
Kunal Saraogi from Equityrush said, “Investors should now focus only on fundamentally sound shares and should avoid taking risks. The best way to invest would be to buy stocks on every correction and should not pour their entire funds in one go and in only once sector.”
Expecting the uncertainness in the markets to continue, he further added, “Investors should completely avoid any kind of short term trades and the markets would continue to remain volatile in the coming days. Also we are expecting the stock markets to fall a little more so all investments should be done only after the markets have corrected.”
Having a similar view, Escorts Security’s Ashok Agarwal said, “It is best to focus on front line shares. Also investors should not continue to hold their losses, rather should immediately exit the trade.”
As per Ashok, the small duration trade might turn out to be quite risky and hence advises, “If investors want, they can invest for the long duration in madcap companies with very low debts and clean balance sheets. But the investment should be done every time the share prices fall.”
Ravi Rastogi of Globe Capital said, “In the coming days, markets can be very choppy and we are expecting them to fall further. Investors should tread very carefully and not park their capital without thinking. It is best to stay away from markets for a few days until things stabalise a little. long term investments look good but should be done in a staggered way. Best sectors we feel investing are banking and real estate as the shares have corrected enough.”
Market experts themselves have turned very cautious and are advising retail investors the same. Fortune Fiscal’s Jagdish Thakkar also feels that investors should avoid trading the current scenario. He said, “The past few days, stock markets rose sharply and now we expect a correction. In this correction, Nifty can even fall down to the levels of 5,500- 5,400. In order to protect their savings, investors should stay out of the markets. And if at all they wish to invest a little, in that case they should stay away from infrastructure, housing, auto and capital goods sector.”