Only a couple of times before in my life have I seen the way the BSE Sensex and the Nifty crash today! The last few times were on Fridays, but today, bloodshed occurred on the first day of a new trading week, i.e. on a Monday. The Economic times stated five reasons (for some reasons best known to it, most events on the stock exchange are analysed with this omnipresent heading of "Five Reasons") for this crash. The chief ones among these were the falling oil prices, the Greek Crisis, and the mother of them all, the contracting Chinese economy. In addition, it also gave a passing reference to exiting FIIs and some other, relatively unimportant stuff.
Be that as it may, it now turns out that investors have all lost big amounts of money in the market for now. So, what should one do? Panic and exit the market, or use this as an opportunity to buy in more of good stocks? Really, it takes a lot of courage to do contrarian buying, but, as the gurus say, you should buy when others are selling and vice versa.
So, let us see what happens tomorrow.
Be that as it may, it now turns out that investors have all lost big amounts of money in the market for now. So, what should one do? Panic and exit the market, or use this as an opportunity to buy in more of good stocks? Really, it takes a lot of courage to do contrarian buying, but, as the gurus say, you should buy when others are selling and vice versa.
So, let us see what happens tomorrow.
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