According to financial analysts domestic markets are better placed in times of current global crisis and as a result they will most likely bounce back in the medium to long term. The growth estimate for the GDP has been revised down to approximately 7% this year. It still remains quite good if compared to other options available to global investors.
Thus, people who invested their money in blue chip or generally strong mid-caps shouldn’t panic in the present market conditions and stick to their positions. A great number of investors entered stocks at higher levels and are aiming at investing further and averaging out. Nevertheless, investors are advised to invest their risk capital only in the markets. Investors who are eager to purchase in bear markets should rather buy in smaller lots and at regular intervals in order to average out the entry price.