On August 6, the Indian stock market showed signs of stabilisation, with the Sensex closing at 78,633.56, down 125.84 points (0.16 per cent), and the Nifty ending at 23,992.55, a decrease of 63.05 points (0.26 per cent). This slight decline followed a substantial drop on August 5, indicating a potential easing of market volaitility.
On the significant downturn in Asian and European markets on August 5, which saw Indian benchmark indices Nifty and Sensex decline by over 2.5 per cent, Edelweiss Mutual Funds CEO Radhika Gupta termed the event as a market correction rather than a crash.
In a social media post on X (formerly Twitter), Gupta advised investors against panicking and instead view the situation as an opportunity for adjustment. She emphasised, "I always say it's called correction not crash because correction corrects our behaviour and it corrects our expectations. Corrections are a part of the journey of investing. So hold tight and stay invested."
Drawing from her two decades of investment experience, Gupta reassured investors that such corrections are typical in the market cycle. She cautioned against hasty decisions, particularly regarding mid- and small-cap investments, stating, "No, even if you make asset allocation mistakes and not all mid- and small-caps are mistakes, this is not the time to fix them. Let things calm down and you will have time to review your mistakes but a storm is not the time to review your mistakes."
Gupta also advised against impulsive buying during turbulent market conditions. "I always say that don't take too much action when you are in a panic. If you're comfortable you can always buy more equities but don't feel the need to take a lot of action in any difficult situation," she explained.
Leading the gains in the Nifty index on Tuesday were Britannia Industries with a 2.75 per cent rise, JSW Steel which zoomed 2.34 per cent, Tech Mahindra (up by 1.86 per cent), Larsen & Toubro (advanced 1.37 per cent), and LTI Mindtree (climbed 1.31 per cent). Conversely, the top losers were HDFC Life Insurance Company, which fell 4.40 per cent, followed by SBI Life Insurance Company which was down 2.77 per cent, Bharat Petroleum Corporation, which slid 2.05 per cent, Shriram Finance (-1.89 per cent), and State Bank Of India, which slipped by 1.72 per cent.
