With the stock markets having come off by more than 50 per cent from their peaks in January this year, this should be a good time to buy into some blue chip counters.

After all, the India growth story is far from over, so what if the economy grows at 7 per cent and not 9 per cent for a couple of years?

The case for Indian equities remains as strong as ever -- India will continue to be the second-fastest growing economy in the world, after China. The fundamental story with a strong domestic market, large pool of skilled manpower and entrepreneurial talent, remains compelling.

Moreover, there are plenty of bargains — it's almost a fire sale out there. Valuations, usually measured by what is called a price-earnings multiple, are now near their lowest levels in the last four or five years.

Remember, it's impossible to time the market -- one rarely catches either the peak or the bottom. Also, as some wise soul pointed out, "It's not timing the market but time spent in the market that matters."

Image: An investor watches share prices on a digital broadcast screen on the facade of the Bombay Stock Exchange. | Photograph: Pal Pillai/AFP/Getty Images

Also read: Meltdown: Thousands of jobs to go globally!

Powered by

Next