In an effort to calm down investors, market participants have launched presentations, urging them to take informed decisions and not panic due to a sudden dip in the bourses. Fund house Fidelity International has made presentations on the impact of the subprime crisis on the global and domestic markets. It also deliberated on market behaviour in the recent past and the way forward.
Making a presentation, Jeff Hochman, portfolio strategist and director (technical research), Fidelity International, said the subprime mortgage crisis continues to strain the Indian markets and it would be difficult to assess how long it would have its impact. He added that market meltdown takes place faster than a rise. Hochman also said that the subprime crisis would take its toll across asset categories ? equities, real estate, bond markets and other segments of the financial market. A Bala Subramanian, CIO, Birla Sun Life Mutual Fund, said the market is volatile due to several global and domestic reasons. Hence, investors should look into investing in value and growth funds for better returns in the long term.
Similarly, both the leading bourses ? the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have already kickstarted investors education programmes. They have asked investors, through advertisements in the media, not to get carried away by rumours and invest only in companies which are fundamentally strong.
Meanwhile, the equity market continued its volatility on Tuesday. Strong global cues helped the markets to open on a positive note. However, alternate bouts of buying and selling kept the markets volatile. BSE Sensex gyrated in the range of 400 points before closing the day at 16,608.01 points, losing 22.90 points or 0.14% while the broader NSE Nifty lost 18.75 points or 0.39% to close at 4,838.25 points.