Global Comparison of Corrections

Indian stock markets have seen huge corrections in past few trading days. This is no reason to panic because in the last five trading days the Global especially the emerging markets have seen sharp corrections. The Indian Stock market just saw close to 2000 point correction. According to Investment Guru's like Mark Faber the recent uptrend in the commodities market an the Emerging markets was hype driven and would soon see a big correction. For Indian stock markets his outlook was positive in long term but in short term a correction of 20% to 30% was inevitable.

Within a week the markets showed huge correction. In the comodities market the gold slipped from 26 year high of above $730 per ounce to $640 per ounce. The silver from $14 per ounce to $12 per ounce. The Aluminium and Copper markets also followed, falling from $3,000+ per tonne to $2,700 per tonne and copper from $8,000+ per tn to $7,600 per tn.

The Indian stock markets has seen huge declined is past few days with almost every single share declining in the major indexes. Take a look at how other emerging markets have also declined confirming a global downtrend.

Russia 12%
India 11%
Brazil 7.3%
Japan 4%
Korea 5%
Taipei 5%

It is very clear that the downtrend seen in the Indian stock market is in line with what we are seeing arround the world. The long term value investors should have nothing to fear. The best thing to do in this type of market is to keep cool and stick to the stategy of long term value building of portfolio. Panic selling will only result in further losses.