Don’t exit in panic, stay calm and look for opportunities, say experts

Sandeep Singh
Posted online: Tuesday, January 22, 2008 at 0035 hrs

NEW DELHI, JANUARY 21: If you are an investor, stay calm, firm. And don’t exit the market in panic. That’s the expert advice after the biggest single-day fall of the Sensex.
Anil Kaul, Head, ICICIdirect, said investors should not press the panic button. “Investors with long term perspective should not get moved by this fall. If you have a good advisor, search for a good opportunity to invest,” he said.
Another aspect that investors need to look at is revisiting their asset allocation, said Ajay Bagga, chief executive officer, Lotus India AMC. “The rise in equity market calls for an assessment of your portfolio.”
Bagga said the fall had in fact opened up opportunities for investors but these should not be taken up randomly. “Look for sectors and companies into domestic play, insulated from global factors like banking, construction, FMCG and media and avoid sectors which are export dominated and that get impacted by global factors like metals and technology.”
The essentials of investment and economy remain strong and corporate results are on track, said the CEO of an asset management company. “In the long term, the market will do well though over the next three to six months it is going to be choppy.”
On the negative side, this fall tells retail investors that the margin game is something they should avoid. “Retail investors should avoid margin trading as the losses can be huge and it needs lot of expertise and close watch,” said Arpit Agrawal, Head (Research), Arihant Capital.