What to do post market sell-off? Just hang in there

Moneycontrol BureauIndian shares joined a global sell-off today, with the Sensex plummeting over 600 points at one point, before it recovered to close above 24,000.The recent bout of volatility will unnerve investors, especially weaker hands who have entered equity markets without firm conviction.For them, veteran stock broker Dipan Mehta has an advice: "Hang in there".In an interview with CNBC-TV18, Mehta said whenever the Indian market has sold off in a big way due to global reasons, it has bounced back sharply soon."Such down markets tend to last for a year. Our market peaked out in March last year [so we should be neared to the bottom]," he said, urging investors to not sell out in a panic.However, investors might just be doing the opposite of what Mehta has been advising.In the same interview, market analyst SP Tulsian pointed out that the price action witnessed in the market points to a broad-based sell-off by domestic instituional investors, especially mutual funds, which had been a strongest hands in the markets yet."A bluechip stock such as Maruti has fallen about 3.5 percent today. Such a stock is among the top picks of most funds. This means that a lot of large funds are facing redemption pressures [from retail investors]," Tulsian said, adding that a lot of systematic investment plans that were started during the market rally of the past two years must now be going into red.That said, investors should use the decline to buy into well-run companies that are now available at bargain prices, said Ravi Shenoy of Motilal Oswal, who outlined a number of stocks the brokerage was bullish on.In the discussion, Motilal's Shenoy was joined by Pioneer Investcorp's Sandeep shenoy and technical analyst Sudarshan Sukhani who discussed a number of stock and sector strategies for investors and traders.For the full discussion, please watch video.