Markets have been rallying since last May 2014. There are few intermediate corrections, but this sort of corrections is owing to turmoil in Chinese economic growth.
Though lesser outcome can be seen in the economic growth of INDIA, but the measures taken by the government are significant enough. So far INDIA has a strong and robust economy, and the corrective in the market would soon be recovered. The major fall has occurred due to un-certainty in Chinese Market. As most of the Global economy is dependent on Chinese market, as it is one of the largest service provider and export of consumer goods.
The factors like Falling crude price, crude barrel is currently trading under 40$, INDIAN Currency is depreciating and has reached 67 Levels viz a viz US Dollar. These factors added up to crash.
The crash impact would have immediate repurcation, but over the longer time frame, all will even out and your portfolio would be in positives.
Don't panic sell your stocks which has strong fundamentals. Have patience, hold on to your stocks, once market recovers, you can take a call on whether to hold or exit the position.
All the losses visible are virtual, unless and until we book profit or Loss, the figures are immaterial.
With such huge corrections, its basically an entry point for the investor's to pick up stocks with good valuations and PE ratios. IT and Pharmaceuticals sector are evergreen and will give decent returns over the long run.
If you are too confused in selecting the right stocks, better option would be to invest in Small and/or Midcap Mutual Funds, or Diversified Equity Funds.
Some of the options for Mutual Funds are
1) SBI Small Cap Fund
2) DSP Blackrock Microcap Fund
3) Reliance/SBI Pharma
They have given good returns over the last 5 years.
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