The BSE Sensex has already wiped out entire gains made in 2018, thanks to a 3,000-point crash that it has seen from its all-time high of 36,443 hit last Monday.
Many market gurus too saw their portfolio stocks plunge by up to 32 per cent in this fall. But while weaker hands go out of the market in such times, value investors tend to hold on to their investments tightly. Conviction is what pays in the risky world of stock market.
Data suggests some of Jhunjhunwala's portfolio stocks have fallen up to 32 per cent this calendar. Aptech is down 34 per cent. Prozone Intu, Geojit Financial Services, MCX and Anant Raj have fallen 27 per cent, 27 per cent, 27.12 per cent and 26 per cent, respectively.
Auto Line Industries, Federal Bank and Orient Cement too have fallen up to 24 per cent during this period. Out of the 30-odd stocks, where Jhunjhunwala holds more than 1 per cent stake, over two third of the stocks have tumbled up to 32 per cent in 2018.
But should such a fall matter to value investors?
On Monday, Ashish Kacholia bought 2,95,000 shares of Shaily Engineering Plastics despite the selloff in the market. Kacholia was seen buying another stock, Vaibhav Global, when the market was climbing new highs last month, amid widespread concerns over rising midcap and smallcap valuations.
For seasoned investors, any day is a good day for buying.
"Differentiate between what you are holding," said Ajay Srivastava, CEO at Dimensions Consulting.
He said it is important for investors to look at whether it was the momentum which brought them to a stock or fundamentals that made them believe in the long-term story.
On Monday, as the indices slid further, another ace investor Shankar Sharma tweeted: "These moments keep happening so regularly in markets: you get your favourite stocks 30 per cent lower, in days. With nothing having changed in their outlook. Love such situations?"
In Dolly Khanna's portfolio, Sterling Tools is down 19 per cent, Dwarikesh Sugar 20 per cent, Nandan Denim 21 per cent, Emkay Global Financial Services 20 per cent, Ruchira Paper 19 per cent, Manppuram Finance 21 per cent, GNFC 19 per cent, Rain Industries 18 per cent and IFB Agro 25 per cent.
Among Ashish Kacholia's key holdings, SP Apparels is down 20 per cent, Time Technoplast 21 per cent, Lokesh Machines 17 per cent, Genus Power 15 per cent, Parag Milk Foods 14 per cent, GHCL 16 per cent and Ashiana 11 per cent.
"This is the time to really be harsh on your portfolio. Ask whether 'I' bought just because the momentum was very good. I will buy fundamentally good stocks any day irrespective of what the market is doing," said Srivastava.