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Single day steep slides in the Sensex
Aug 26, 2015

As highlighted earlier, on Monday (24-Aug-2015) BSE-Sensex tumbled by 1,624 points, registering a fall of 6.2% in a single day. And if you believe this was one of the biggest falls in the history of the Indian stock markets, think again! Below is a chart which shows the biggest declines in the Sensex in a single day in percentage terms.

Crashes of this kind typically result in colossal losses in stocks, both good and bad. But the bad ones really take a beating. These are companies having huge debt on the balance sheet, higher promoter pledging and a weak management overall. And if such stocks are part of one's portfolio, they can virtually make the entire portfolio come crashing down.

But for quality companies run by a sound management, price corrections such as these provide the perfect opportunity to add them to your portfolio. And we for one are waiting for more such falls.

Should there be more corrections in the coming months, be prepared to see a lot more buy recommendations from us. Both our Stock Select and Hidden Treasure teams have already released special reports on the stocks which investors can look to invest in the current environment.

Data source: Business Standard

This Chart Of The Day was published in The 5 Minute WrapUp - Time to go bargain hunting?

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