FOR LIVE OPTION CALL PUT TIPS JOIN US ON WHATSAPP 9039542248
Russia has launched an
attack by armed forces on Ukraine and the event has sent shockwaves around the
world. Indian markets were not immune to this and saw a massive sell-off on
Thursday ahead of the F&O expiry. However we advised investors not to panic
and stay invested in quality stocks given the ongoing uncertainty about Russia
and Ukraine. The Sensex plunged over 2000
points in morning trade after Russian President Vladimir Putin announced a
military operation in eastern Ukraine. Meanwhile, oil prices rose, surpassing
$100 a barrel for the first time since 2014. Market participants were also
concerned as India Ratings revised down its GDP growth forecast for 2021-22 to
8.6% from the previously forecast 9.2%. There was also some pessimism as
foreign institutional investors (FII) remained net sellers of domestic stocks
on Wednesday.
Should You Panic or Stay
Invested?
According to us this is
a time when investor’s patience and discipline will be tested. Markets are
choppy and likely to remain so for some time, but that shouldn't deter a
serious investor.
Investors should not
panic and continue to stay long in India.
1) Balance sheets
stronger than ever: India's corporate health is at its strongest in a long time
- deleveraging has been seen across sectors and cash reserves have skyrocketed.
As a result, corporate trust is high.
2) Promoters are
optimistic about business potential: this is reflected in promoters' increasing
participation in Nifty50 over time, rising from 32% to 45% over the past
decade. Interestingly, post-Covid promoters have increased their share by
around 3%.