On April 7, the stock market has fallen by more than 4%. So far this year, the market has fallen by more than 8%. This fall has created an atmosphere of fear among investors. However, the right strategy can make you earn good money in this fall.
According to Ajay Kedia, Director of Kedia Advisory and Investment Expert Swati Kumari, one should focus on strong fundamentals and large-cap stocks at this time. These companies perform better at such times. At the same time, one should invest in consumption sector stocks like pharma-healthcare, energy and banking.
Stock Market: 7 important things told by the expert, which should be kept in mind during the market fall…
1. Stay calm and avoid panic selling
Stock Market: What to do: Avoid taking emotional decisions during a market fall. Selling stocks at a low price ensures loss, while holding them keeps the possibility of recovery.
Why: Historically, the Indian market has shown recovery after major shocks (such as the 13.15% decline in March 2020). This decline in April 2025 may also be temporary.
2. Focus on stocks with strong fundamentals
What to do: Invest in companies that have strong balance sheets, consistent profits, and good management, such as large-cap stocks or defensive sectors (FMCG, pharma).
Why: Large-cap and defensive stocks are less volatile in a dip. For example, on April 4, when IT and financial sectors fell, the pharma index saw a gain of 2.25%.
3. Start or increase a Systematic Investment Plan (SIP)
What to do: Invest regularly in mutual funds or index funds through SIPs, especially now when the market is down.
Why: Investing in dips keeps the average cost low, and gives better returns when the market recovers. For example, after the 2008 recession, investors got a return of 12% to 15% in SIPs of large cap funds in the next 5 years (2009-2013).
4. Maintain cash reserve
What to do: Keep 20-30% of your portfolio in cash or liquid assets so that there is a chance to buy in case of further decline.
Why: The market may go down further. Having cash allows you to buy quality stocks at a cheaper price. This strategy is often adopted by big investors.
5. Risk management is important
What to do: Set stop-losses or use hedging tools like put options, especially for traders. Long-term investors should focus on diversification (equity, debt, gold).
Why: The IT sector (Infosys, TCS) has seen a decline of 20-25% in April 2025. Risk management can limit losses, especially in volatile markets.
6. Avoid cheap stocks
What to do: Avoid investing in penny stocks or companies with weak fundamentals.
Why: These stocks are the worst hit in a crash and have low chances of recovery. For example, small-cap and mid-cap stocks have seen huge losses in 2025.
7. Look at the long term
What to do: Ignore short-term fluctuations and set 3-5 year targets.
Why: The Indian market has always shown growth in the long term. From 1992 (12.77% decline) to 2020, every major crash has been followed by a recovery.
