Investors advised to remain calm amid market volatility

Markets have seen significant volatility, with the Nifty index dropping nearly 6% in February, marking its worst monthly decline since 2020. Midcap and smallcap indices have entered bear market territory, with sharp corrections. Rajesh Cheruvu, CIO of LGT Wealth India, notes that current Nifty valuations are below the five-year average, suggesting a potential market bottom. He advises investors to focus on companies with strong earnings growth and reasonable valuations. Foreign Portfolio Investors have withdrawn over Rs. 1.1 lakh crore from Indian equities in early 2025. Cheruvu indicates that while FPI selling may slow, domestic investors are holding firm amid market panic.