We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

– Warren Buffett

Today, on a Friday, the stock markets have provided both delight and dismay to the Investors!  Within a few minutes of opening at 9.15 a.m the share prices of most of the scripts fell down like a pack of cards and Both the BSE (30 Scripts) and Nifty (50 Scripts) Indices crashed by 10 % -leading to the suspension of the market operations for 45 minutes. The BSE lost over 3000 points and Nifty 1035 points. But when the market resumed after 45 minutes, the markets recovered quite fast and gained substantially entering the positive terrain. Almost all the shares like SBI, SunTV, Maruti, Bank of Baroda, BHEL and many more have gained nearly 10 % over yesterday’s rates. Now at the time of reporting the Sensex is @ 34504  after touching a low of 29389 today, so also NSE @ 10019 vs a low of  8555 today, Bank Nifty 25300 vs low of 21352.

The gist of the data is as below:

 Biggest Intra-day Recovery For Indian Market After Hitting 10 percent Circuit

– Nifty Reclaims 9,500 After Slipping To The Level Of 8,555

– Sensex Gains Up To 4,000 Points From Intra-day Low Of 29,389

– Nifty Bank Reverses Losses, Gains Up To 3,300 Points From Lows

– Midcap Index Jumps 10 percent From The Intra-day Low Of 12,715

– HDFC Biggest Contributor To Recovery In Nifty

– Market Breadth Improves Sharply From The Opening Hour

– Advance-Decline Ratio Now At 1:4 Against Opening Level Of 1:28

– 14 Nifty Stocks Are In The Green; Sun Pharma, HDFC, Bharti Infra Top Gainers

– IndusInd Bank, IDFC First Bank Up Over 40 percent From Lows On Telecom Relief

– Bharti Airtel Gains 13 percent and Vodafone Idea Up 50 percent From Lows On Telecom Relief.

All these evidently and surely demonstrate that our Indian Stock markets are fundamentally strong and robust although temporary shocks like Coronavirus do impact the whole world particularly China, Korea, Italy and a few others including India.  So there is no reason to become panicky and get depressed.

In fact, many corporate investors availed this golden opportunity to pick up some of the best shares like Maruti, SBI, BOB, Cipla, Lupin, Reddy’s Lab, Reliance Industries and so on, almost at the lowest possible rates. The impact of COVID 19 being the least in India, there is no reason for the markets to go down because of the impact of it. In fact, even when some of the critics were pointing at the slow down in India, the Share markets were scaling new highs during the last few months.

To trace the history, it is not the first time such knee-jerk reactions surface. This happens once in 10-15 years. When the US Financial markets crashed in the Year 2008 due to huge NPAs and failure of Mortgage banks and saw a dip of 778 points (Dow Jones) and the bubble burst, the Federal reserves bailed out these institutions. In India too, on 24.10.2008 BSE lost 1071 points (11%) and Nifty 13 % and similarly in Jan 2008 lost 1408 points but recovered to 17605 and today Sensex is around 34700 and Nifty 10130.  Similarly, in 1987, the recovery was quite fast after the slump.

Those investors who are quite optimistic and well- versed with the movements and the inherent strengths of our stock markets have used such occasions and opportunities to create a huge and profitable portfolio over the years. So let us be careful and at the same time shrewd enough to avail this once in a lifetime opportunity to build our portfolio without falling prey to the rumors and pessimism!

Bearish markets are considered the best time to invest in stock markets

DISCLAIMER: Investments are subject to market risks, Please do invest carefully