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Foreign institutional investors (FIIs) are selling heavily and taking their funds out of emerging markets, including the domestic markets. The markets here have fallen quite significantly (around 50 percent) from their peak levels. Many blue-chip stocks have corrected 60 to 80 percent during this market crash. Stocks and sectors that led the market rally during the last few years are among the worst-hit in this correction. For example stocks in infrastructure, banking, financial services, aviation, and information technology have seen much deeper drops than key market indices. Many investors are stuck in these stocks at higher levels. Investors are not sure whether they should sell at these levels or buy more to average out their purchase price. Here are some points to help investors take a decision: Stay invested Markets have already crashed by around 30 percent in the last one month or so. Many blue-chip stocks are trading at their yearly or all-time lows. Nobody can rule out further slides of 10 to 15 percent but the possibility of sharp falls from these levels is quite remote. Equity analysts believe that the domestic markets are better placed in this global crisis and therefore they will bounce back in the medium to long term. Domestic companies don't have significant exposure to the US sub-prime crisis and export contributions to the GDP are also not very high. The GDP is expected to grow in the range of 6.5 to eight percent in the coming years. Therefore, those invested in blue-chip or fundamentally-strong mid-caps should not panic in the current market conditions and hold on to their positions. http://forums.investorline.co.in/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
