Worried about the stock market crash? Radhika Gupta, CEO of Edelweiss Mutual Fund believes investors need to be patient. Comparing the benchmark stock market index Nifty to Bollywood star Shah Rukh Khan, she says that the markets will deliver returns most of the time.
Recently speaking at Groww’s ‘Ab India Karega Groww’ event, Radhika Gupta reportedly said, “Nifty is Shah Rukh Khan because he has had some bad patches, but has delivered most of the time.”
Even as it is important for stock market investors to remain cautious about market corrections, particularly in mid and small-caps, Radhika Gupta advises against strategy alterations during turbulent periods. She emphasises the significance of maintaining long-term investment commitments rather than reacting to temporary market fluctuations.
She counselled women investors to avoid panic-driven decisions whilst remaining cognisant of investment possibilities during corrections.
Also Read | Stock market crash: Sensex, Nifty are bleeding! Why it may be time to put your money in gold, silver, FDs, bonds & other investment avenues
Gupta stressed the value of maintaining Systematic Investment Plans (SIPs) during market downturns. She cautioned that missing instalments during difficult periods could affect long-term returns. “If your money is giving you sleepless nights, your asset allocation is not right,” she advised, encouraging balanced portfolio creation.
Recent market volatility has seen the Nifty and Sensex decline up to 14 percent from peak levels, whilst the broader Nifty 500 entered bear territory with a 20 percent reduction.
Foreign Portfolio Investors withdrew Rs 34,574 crore from Indian equity markets during February, resulting in cumulative outflows reaching Rs 1.12 lakh crore in January and February 2025. This significant withdrawal occurred due to escalating worldwide trade conflicts and uncertainties regarding business profit expansion.
Also Read | Q3 FY25 GDP grows at 6.2%; India sees ‘highest growth in 12 years’ in FY24 – top 10 data points to know
Market experts widely acknowledge India’s robust long-term prospects, yet they point to diminished corporate profits and valuation issues as triggers for profit-booking. Additionally, there are concerns about the consequences of US President Donald Trump’s implementation of reciprocal tariffs on India.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, foreign institutional investors will return to India once the economy and corporate earnings show signs of improvement. He anticipates these indicators to emerge within two to three months.