Should You Buy Or Sell As Benchmark Indices Remain In Correction Mode? Here's What Experts Suggest

In the past five days, benchmark indices have witnessed a significant drop of over 2 per cent. These indices serve as indicators of market performance, comprising a selection of stocks or other instruments. Key benchmarks include the S&P BSE Sensex, NSE Nifty, BSE 200, BSE midcap index, BSE small-cap index and Nifty 500. Notably, the S&P BSE Sensex and other equities have experienced widespread declines.

Market experts, as reported by Moneycontrol, reassure investors that this downturn constitutes a short-term correction, advising against panic selling or fresh buying at present. A correction, defined as a decline of 10 per cent or more in asset prices, is considered a normal market phenomenon.

Amish Shah, Research Analyst at Taurus Corporate Advisory Services, suggests awaiting quarterly results for insights into the financial year 2025 outlook. He also notes the upcoming Lok Sabha elections in April 2024, prompting a cautious ‘wait-and-watch’ stance among investors.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, analyzes the market situation, highlighting the formation of a bearish candle on daily charts and a lower top formation on intraday charts, indicating negative sentiment. The presence of an engulfing bearish candle suggests significant selling pressure, potentially overshadowing previous gains.

Several prominent companies, including Nestle India, IndusInd Bank, Wipro, Infosys, HCL Tech, ITC, Power Grid, Tech M and Sun Pharma, incurred losses amid the equities’ decline. Additionally, Tata Motors, L&T, Asian Paints, SBI, Axis Bank and Ultratech Cement faced downturns. Tata Consultancy Services witnessed the most substantial setback on benchmark indices, plummeting by 4 per cent following reports of Tata Sons’ likely sale of about 0.6 per cent stake in the company.

The S&P BSE Sensex concluded with a decline of 736 points, or 1.01 per cent, settling at 72,012 levels, while the Nifty50 closed at 21,817, down 238 points or 1.08 per cent. As markets navigate this correction phase, investors are advised to remain vigilant and make informed decisions amidst fluctuating conditions.