Stock and mutual fund portfolios are bleeding heavily, amid weak stock market sentiments after the Russo-Ukraine war. Although it has been more than 15 weeks since Russia invaded Ukraine, the markets still haven’t stabilized. So, every time there is a relief rally, people start speculating that the market is going down and expect a big rally in the coming session. However, Nikhil Kamath, the founder of Zerodha has a suggestion for such people. In one of his earlier tweets, Nikhil Kamath suggested that when things are not going your way, it is better to stay away from the market.
Nikhil Kamath, founder of Zerodha The tweet talking about the current market scenario said, “9 times out of 10, when things don’t go according to you, the best thing to do is to do nothing. In life and in the market…”
echoing with Nikhil Kamath’s Suggestions, said Sunil Damania, Chief Investment Officer, Marketsmojo, “Investors have experienced pain in the last few months. However, they may still need to be patient and endure a few more months. But after that, the Indian market is ready. Maybe. Smart to profit. Just stick to your equity investments. Don’t take any decision based on fear and emotion. Indian Equity market is making an excellent base for the next rally. If you want to ride the rally So make sure you don’t. Don’t settle in haste.”
In YTD time, the Nifty 50 index is down nearly 10.70 per cent, while the BSE Sensex is down as much as 11 per cent. In the year 2022, the BSE Midcap index has fallen by more than 13 per cent, while this year the Smallcap index has fallen by about 16 per cent. This has had a huge impact on the equity and mutual fund portfolios of various investors.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.