There was a big fall in the Stock Markets on Thursday. The market had declined last week as well. In fact, the markets have been falling almost continuously since Monday of last week. There was a big fall in the market on Monday this week. Sensex closed down 1545 points. Since Monday (January 17) of last week, the Sensex has fallen 4,032 points so far. During this, Nifty 50 has fallen by 1,157 points. This fall has scared retail investors. Many investors are thinking of withdrawing their money from the market. The question is, is this the right thing to do? What should retail investors do now? Let us try to know the answers to these questions.
If you are a retail investor and have invested money in the market then you need not fear. There is a need to be afraid of those people who had turned to the market to make quick money. It is normal for the stock market to fluctuate. Sometimes it is due to domestic factors and sometimes external factors. This time the market is declining due to external factors. This is the reason why weakness is visible not only in India but in the markets around the world.
If you are afraid of this fall of the stock market, then you should remember the fall in March 2020. There was a massacre in the stock markets around the world due to the news of the outbreak of Corona epidemic. On March 23, the Sensex had fallen 3,934 points to 25,981. Nifty fell 1,135 points to end at 7,610. Both indices have more than doubled since then. Despite the recent fall, Sensex and Nifty are at double levels as of 23 March 2020. This is proof that the market has managed to recover after every major downtrend.
The biggest threat to the stock market has been the corona epidemic. The good thing is that now this threat seems to be decreasing. Omicron has not proven to be fatal. Most people have had the vaccine. Beyond this, a lockdown like the year 2020 is not expected, due to which the economic activities came to a complete standstill. So there is no need to panic about the recent ups and downs. Soon the market will be able to recover from this.
You need to maintain your investment in the market. If you are investing for long term then you don’t need to keep track of Sensex and Nifty data daily. You don’t even need to listen to others and follow in their footsteps. Those people who are more nervous about the market fall, invest money in research stocks without seeing others and wait for their money to double immediately.
If you are investing in Equity Funds through SIP then you should not close your SIP. This fall will be beneficial for you. If the market falls, you will get more units allotted in the SIP. This will increase your returns from mutual funds. You can use this fall opportunity to buy. Yes, you have to keep in mind that do not invest the entire money in one go.
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