If you opened your investment app today and saw your portfolio deep in the red, you’re not alone. Domestic stock markets have witnessed a sharp sell-off over the past few sessions as escalating tensions in the Middle East rattled global markets and triggered heavy selling on Dalal Street.
On Wednesday, the BSE Sensex plunged more than 1,300 points, while the Nifty 50 slipped below the key 23,900 level, with financial, auto and IT stocks leading the fall. Shares of Bajaj Finance dropped around 5%, while several heavyweight banking stocks also ended sharply lower.
The recent decline has been driven largely by fears that the conflict involving Iran could disrupt global oil supplies, push crude prices higher and create fresh inflation pressures worldwide.
For many investors, such sharp market swings trigger one immediate question: Should I stop my SIP for now?
Investment experts say the answer is usually no.
MARKET FALLS CAN FEEL SCARY, BUT THEY ARE NORMAL
Sharp declines can make markets feel unstable, especially when they are triggered by global events such as wars or geopolitical tensions.
But volatility has always been part of equity investing.
Over the past two decades, markets have gone through several sharp corrections—from the 2008 global financial crisis to the COVID-19 crash in 2020. Each of these episodes caused panic at the time, yet markets eventually recovered and moved higher as economic activity stabilised.
For long-term investors, market corrections are a normal phase rather than a signal to exit.
SIPs DELIVER MOST AFTER MARKET CORRECTIONS
Systematic Investment Plans (SIPs) are designed to help investors navigate market ups and downs by investing a fixed amount regularly.
Nikunj Saraf, CEO at Choice Wealth, says corrections are often when SIP investing works best.
“When markets fall, investors tend to panic and stop investing. But historically, those are the moments when SIPs deliver the most value because investors accumulate more units at lower prices,” he said.
SIPs operate on the principle of rupee cost averaging. When markets fall, the same SIP amount buys more units of a mutual fund. When markets rise, it buys fewer units.
Over time, this helps lower the average cost of investment.
MARKETS EVENTUALLY RECOVER
Market corrections may feel dramatic in the moment, but history shows that markets eventually bounce back.
During the Covid-19 market crash in March 2020, the Nifty 50 plunged nearly 38% from its peak, triggering widespread panic among investors.
However, those who continued their SIPs during that period benefited significantly as markets rebounded sharply over the next 12–24 months.
Data also shows that 10-year SIP investments in Indian equities have historically delivered around 12–14% annualised returns, despite multiple market corrections along the way.
Experts say stopping SIPs during volatile periods breaks the discipline that makes long-term investing effective.
Aditya Agrawal, Chief Investment Officer at Avisa Wealth Creators, says investors should focus on their long-term goals rather than reacting to short-term market movements.
“Equity markets are non-linear in nature. Stopping SIPs during downturns can be counterproductive, as SIPs benefit from rupee cost averaging and allow investors to accumulate more units at lower prices,” he said.
According to Agrawal, equity markets have historically bounced back after every major fall.
“Investors who remain disciplined and stay invested through market corrections are more likely to benefit when markets recover,” he added.
WHAT SHOULD INVESTORS DO?
Instead of reacting emotionally to market volatility, experts recommend reviewing portfolios and staying focused on long-term financial goals.
Market corrections can also be an opportunity to reassess asset allocation, ensure diversification and continue investing in quality mutual funds.
For SIP investors, consistency remains the key principle.
Trying to time the market—exiting during falls and re-entering later—is extremely difficult even for professional investors.
As many financial advisers say, successful investing is less about timing the market and more about time in the market.
