The Sensex tumbles down again!!

The 30 Securities' Sensitive Index 'Sensex' of the BSE tumbles down again by 366 points (3.14%) to close at 11328 mark. This was a consequence and the result of the fall of DOW by over 5%. FIIs are taking their money back from the Indian Markets to support the US economy in maintaining the liquidity. This resulted in the lack of liquidity in the Indian Financial markets.

The sensex opened at 11245, 450 points down from the previous close and reached as low as 955 points down
from the prev. close. It was the FM and SEBI's positive statements that restored the confidence to pull up the Sensex to the point of its closing.

This liquidity crisis is expected to remain untill the US financial crisis is not over and the FIIs are ready again to invest in India. But Indian need not to do panic because the India is not going to suffer for a long time. This is the time to keep patience and watch for the markets to stabilize a bit. This fall has also come with it the opportunity to invest at cheaper and more attractive prices.

But a period of atleast 2 years or more should be considered for the investment in the market. Those who have some quality stocks in their portfolio need not to worry if and should have a long term perspective. And if someone who has already liquified his holding should keep the cash till this downfall stops. However if someone feels if the market will not fall beyond the current level he can invest in quality stocks. But to avoid losses smart investing is needed. Go with the Infrastructure, cement stocks and the stocks of the companies whose product is an industrial product. Entertainment indusrty is also expected to do good in future and the evergreen Oil and Gas Industry can also be viewed as the possible avenues to invest in.

The thing to remember is that the only 'Success Mantra' at the time is to be 'Carefull' and 'Invest Smartly'.
Good Luck