Business
Sensex down over 10K points from Dec peak. Should MF investors buy the dip, hold positions, or wait on sidelines?
Market experts believe that investors should see this 10,000 point correction as a buying opportunity rather than a reason to panic.
Vishal Dhawan, Founder & CEO, Plan Ahead Wealth Advisors told ETMutualFunds that investors should view this 10,000-point Sensex correction as a long-term buying opportunity as market drawdowns are natural processes that shake out speculative premiums, resetting valuations to fundamentally healthier levels.
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“Long-term investors can continue their Systematic Investment Plans (SIPs) and hold current positions firmly. Pausing allocations to “wait for clarity” is a psychological trap that historically locks investors out of the sharpest days of a market rebound.”
Dhawan further said that while regular SIPs are key to an investment journey, panic selling must be completely avoided; use this market decline to methodically build an equity baseline designed to reward your patience when economic sentiment inevitably swings back to optimism at some point in the future and it is critical to have a minimum 5-7 year investment horizon whilst investing.
Echoing a similar opinion of considering this as a buying opportunity rather than a reason to panic, Amitabh Lara, Executive Director, Anand Rathi Wealth Limited shared with ETMutualFunds that for long-term investors, this is not the time to stop investing.Amitabh further said that continuing SIPs during a fall can actually work in your favour because the same investment amount buys more units at lower prices and one of the biggest mistakes investors make is stopping SIPs during a correction and returning only after the recovery has already happened.
The benchmark index which touched a peak of 84,391 on December 10, 2025, is now down by nearly 10,148 points to a level of 74,243 as of June 6, 2026.
As the market becomes volatile, investors as well as the fund managers keep cash in hand and wait for the opportunity to deploy it in the market but with a dilemma whether to deploy cash immediately or stagger investments over time.
Amitabh said that if investors have idle cash available then they can go ahead and invest as a lumpsum and funds can be deployed in a staggered manner through tranches, over 6 to 8 weeks. “It also removes the stress of trying to time the exact bottom. If they have SIPs, they can continue it without worrying about the market level and take advantage of rupee cost averaging.”
Dhawan said that for investors sitting on cash, a staggered deployment strategy via a 6-month to 12 month Systematic Transfer Plan (STP) is highly recommended as this approach could hedge your principal against intermediate downside volatility.
He further said that investors should avoid deploying an absolute lumpsum at current levels, as picking the exact market bottom is a statistical myth and tranche-based buying ensures you average out your entry costs across multiple lower price bands smoothly.
“Park your liquid capital in low-duration instruments and systematically route it into equity. This automated execution effectively replaces portfolio anxiety with disciplined benefits. In case you wish to deploy a lumpsum, and not do a STP, an investment in the Balanced Advantage category is suggested.” Dhawan said.
How equity categories performed
ETMutualFunds checked the performance of equity mutual funds since December 10, 2025. Small cap funds have delivered an average return of 6.06% since the date BSE Sensex touched the new peak, followed by mid cap funds which gave an average return of 2.58%.
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In contrast, the counterparts, large cap funds gave a negative average return of 6.26% since December 10, 2025. Multi cap funds gave an average return of 0.06% whereas flexi cap funds fell 2.95% on an average in the said time period.
Out of 10 equity categories, only three gave positive average returns which were small caps, mid caps and multi caps whereas the other categories such as large caps, contra funds, ELSS, flexi, focused, value and large & mid caps gave negative average returns.
Which market-cap segment could lead the recovery?
Dhawan said that large-cap stocks are typically best positioned to lead the initial recovery wave when domestic and foreign institutional flows return and their robust cash flows, operational scale, and institutional backing provide an essential fundamental moat.
He further said that mid-caps may require stock-specific elements to perform, as many names went up significantly during the previous bull cycle; small caps should be approached with high caution and patience, as they remain prone to sharp liquidity outflows during market corrections. “Limit small-cap exposure if you can handle the volatility and have a longer time horizon of 7-10 years for mid and small caps.”
Lara said that small caps appear to have the most room for upside when markets recover. Currently, Nifty Smallcap 250 is trading about 17.4% below its fair value, compared with 9.6% for the Nifty Midcap 150 and around 5-9% for large-cap indices. Hence, small caps have corrected more than large caps and mid caps relative to their earnings potential.
He further said that investors can have a balanced exposure across market caps, with 55% in large caps and the rest in mid and small caps to be a part of the eventual recovery that will follow in the markets.
BSE Sensex: In the last six months, the index was down 13.38% and in the nine months, it was down 8.01%. In the last one year, Sensex was down 8.83% whereas in the last three years and five years it was up 5.74% and 7.33% respectively.
Sector allocation becomes particularly important during market corrections as valuation gaps emerge across industries. The question is whether investors should actively target beaten-down sectors or focus on broader diversification.
In response to this, Lara said investors should avoid investing in single sectors or making sectoral bets as performance in sectors/themes is highly cyclical. For example, in 2024, the pharma & IT sectors were part of the best-performing sectors, however, they both turned into worst-performing sectors in 2025, which suggest that entry and exit at the right time play a crucial role in making investments in the sectorial/thematic funds.
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During such corrections, it would be more beneficial for investors to invest in diversified categories of equity mutual funds to get exposure to all sectors and benefit from their performance, rather than focusing solely on any single sector, Lara further said.
Dhawan said to prioritize accumulating high-quality banking and financial services funds as these segments offer good earnings visibility, corrected price multiples, and fundamentally strong underlying balance sheets.
He further said systematic accumulation of Information Technology (IT) funds could be attributed to these deep valuation resets as they are cash-rich franchises with low debt. However, they do face business model risk. Conversely, stay away from Utilities and capital goods as valuations look well above their long term averages.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.
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Earnings call transcript: KIT posts resilient H1 2026 results as FFO rises 14%
The proposed changes involve extending single house planning exemptions and increasing the powers of the state’s planning commission.
One of the nation’s biggest former pastoralists, the Botha family, has put its signature Lake Jasper homestead on the market.
Fox News Sunday reveals the Democratic Socialists of Americas (DSA) platform, which includes eliminating the U.S. Senate and replacing the presidency. Co-chair confirms these radical proposals.
A Trump administration official is touting the recently launched Trump Accounts as a means to boost young Americans’ financial literacy and appreciation for capitalism by giving them experience that draws them away from “poisonous ideologies” such as socialism.
Comptroller of the Currency Jonathan Gould spoke at a planning meeting for the Financial Literacy and Education Commission on Tuesday and said in remarks reviewed exclusively by FOX Business that Trump Accounts can help Americans understand how the financial system and markets work, showing the benefits of capitalism.
“When Americans understand how our financial system works, they are better equipped to save for the future, protect themselves from fraud, and fully participate in the greatest economy in the world,” he said. “For Americans to believe in capitalism, they need the opportunity to participate in it.”
Trump Accounts officially launched earlier this month. (Win McNamee/Getty Images)
“If financial illiteracy leads to socialism and other poisonous ideologies proliferating on college campuses and in certain cities, Trump Accounts can be the antidote, minting a generation of capitalists who believe in America, build wealth, invest in their communities, and own a share in our nation’s economic success,” Gould added.
WHAT ARE THE INVESTMENT OPTIONS FOR TRUMP ACCOUNTS?
Trump Accounts were created by the One Big Beautiful Bill Act last year and were formally launched on July 4.
The initiative creates tax-advantaged investment savings accounts for eligible children, with those born between 2025 and 2028 given $1,000 in seed money from the federal government. Parents and guardians may contribute up to $5,000 per year to the accounts belonging to their children, while a parent’s employer can contribute up to $2,500 annually without impacting the employee’s taxable income.
Pedestrians walk past an American flag displayed outside of the New York Stock Exchange (NYSE) in New York, U.S., on Sept. 12, 2016. (Michael Nagle/Bloomberg via Getty Images)
Funds in Trump Accounts may be invested into low-cost index funds with broad, diversified exposure to the U.S. stock market.
Over time, proponents of Trump Accounts note that strategy could yield significant returns for Trump Account beneficiaries based on the historical performance of the U.S. stock market.
GOLDMAN SACHS TO CONTRIBUTE $1,000 TO TRUMP ACCOUNTS FOR ELIGIBLE CHILDREN OF EMPLOYEES
An analysis by the White House’s Council of Economic Advisors (CEA) found that based on historical average returns on the U.S. stock market, funds invested in Trump Accounts could grow into a substantial nest egg by the time a child turns 18, depending on how much is contributed over time. The funds could then be used to help pay for education expenses, a down payment on a home, or a jump start on retirement savings.
CEA found that if maximum contributions are made to an account belonging to a child born in 2026, the account balance would reach $303,800 by age 18 and $1,091,900 by age 28 in a medium-returns scenario.
In a low-returns scenario with maximum contributions, balances would be $187,400 by age 18 and $772,200 by age 28; while in CEA’s high-returns illustration, the balances would be $730,400 by age 18 and $1,904,300 by age 28.
The White House released an app for Trump Accounts. (Trump Accounts / Fox News)
If no contributions are made to a Trump Account belonging to a child born in 2026 beyond the $1,000 seed money from the government, the account balance would reach $5,800 by the time they turn 18, with continued compounding growth taking that total to $18,100 by age 28 in CEA’s medium-returns scenario.
HERE’S HOW MUCH TRUMP ACCOUNT BALANCES COULD GROW OVER TIME
Ahead of the program’s official launch, the Treasury Department unveiled the default exchange-traded fund (ETF) that is available to investors now – as well as four other ETF options that will be added to the accounts as alternatives.
The default investment option is the State Street SPDR Portfolio S&P 500 ETF (SPYM), which is a low-cost ETF that tracks the performance of the S&P 500 Index.
Treasury explained it provides broad exposure to the U.S. stock market and has a low fee structure that’s well below the expense ratio limit of 0.1% that was established by law.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SPYM | STATE STREET® SPDR® PORTFOLIO S&P 500® ETF – USD DIS | 86.99 | +0.03 | +0.03% |
| IVV | ISHARES CORE S&P 500 ETF – USD DIS | 742.55 | +0.19 | +0.03% |
| VTI | VANGUARD TOTAL STOCK MARKET ETF – USD DIS | 365.18 | +0.38 | +0.10% |
| SPTM | STATE STREET® SPDR® PORTFOLIO S&P 1500® COMPOSITE STOCK MARKET ETF – USD DIS | 89.87 | +0.07 | +0.08% |
| ITOT | ISHARES TRUST CORE S&P TOTAL US STOCK MKT | 162.10 | +0.10 | +0.06% |
Four other low-cost ETFs that track broad indexes will be added to the Trump Accounts lineup of investment options:
- iShares Core S&P 500 ETF (IVV)
- Vanguard Total Stock Market ETF (VTI)
- State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT)
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Treasury indicated at the time of the announcement that it expected the functionality for additional investment options to roll out in the coming months, which would let parents or guardians allocate funds across the additional options.
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FOX Business correspondent Lydia Hu reports live from a Walmart in North Bergen, NJ, on record back-to-school spending on Varney & Co.
A major rural lifestyle retailer is closing dozens of pet stores in its portfolio around the country as it reevaluates both its existing footprint and growth plans.
Tractor Supply released its latest earnings report last week and revealed plans to close 75 Petsense locations around the country.
The company said in its release that as of late June, there were 209 Petsense by Tractor Supply stores across 23 states.
“Following a disciplined review of Petsense, we’ve decided to close approximately 75 underperforming stores. We believe these actions will improve returns, simplify the business, and allow us to direct resources towards higher growth, higher return opportunities,” said CEO Hal Lawton on the earnings call.
Tractor Supply revealed plans to close 75 Petsense stores around the country. (Spencer Platt/Getty Images)
Lawton noted that the Petsense locations that are closing were negative four-wall cash flow, meaning that those stores’ sales weren’t enough to cover costs that are local to individual stores, such as rent, labor and inventory.
Stemming the losses from those locations will allow the company to reinvest funds back into the core of the business, he added.
Lawton also said that after the closures, he thinks the company will “have a very strong, profitable Petsense business,” and that it will work well within the company’s broader pet ecosystem that includes Allivet and VIP Petcare.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSCO | TRACTOR SUPPLY CO. | 31.80 | +0.78 | +2.51% |
CVS OFFERS NEW PHARMACY OPTION FOR PET OWNERS
He also emphasized that the company doesn’t view the changes with Petsense as affecting the reacceleration of pet products within the core Tractor Supply business, which isn’t directly connected to Petsense.
Tractor Supply CFO Kurt Barton said on the call that the “strategic repositioning of Petsense is expected to create a healthier, more profitable business that better complements our Tractor Supply stores and strengthens our ability to serve pet customers across our integrated pet ecosystem.”
Tractor Supply said that its closure of 75 Petsense locations won’t affect its other pet-oriented initiatives. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images)
TRACTOR SUPPLY NO LONGER GOING WOKE, ELIMINATES DEI GOALS
Lawton also said that Tractor Supply plans to open dozens of new stores in 2027, though the total number is expected to be approximately 85 to 90 stores as opposed to the company’s previous expectation of opening 100 new stores.
Funds saved from the pared-back store opening plans will be redeployed toward initiatives like remodels under Project Fusion, which aims to improve the performance of Tractor Supply’s existing store base.
Johnson & Johnson (J&J) has offered to pay as much as $5.5bn (£4.14bn) to resolve tens of thousands of lawsuits alleging that its baby powder and other products containing talcum cause ovarian cancer.
The proposed landmark settlement aims to close a long-running legal battle that has weighed on the US healthcare giant for years.
J&J has denied that its talc-based products caused cancer and has changed the formula of its widely-used baby powder.
Erik Haas, the firm’s vice president of litigation said on Monday, external that the allegations are “meritless” and that J&J was willing to settle in order to finally resolve the matter.
J&J said the settlement would cover about 69,000 cases, totalling most of the remaining talc-related claims. The firm will offer up to $3bn next year, with no additional payments due before 2028, it said.
The proposal must be accepted by legal firms representing 95% of the ovarian cancer claims in state and federal courts before it can be finalised, the J&J said.
Haas said in a statement that the company is confident that it would have “ultimately prevailed with further litigation” just as it has in the majority of cases heard in court to date.
He added that the proposed resolution “allows the company to put this matter behind it” and enable J&J to “remain focused on its mission to develop medicines and devices that save lives”.
Lawsuits against J&J over its talc-based baby powder started as early as 2009.
Earlier in July, a federal court handed the firm a victory by questioning individual plaintiffs’ ability to show that talc was the direct cause of their ovarian cancer.
Talc is a natural mineral made of magnesium, silicon, oxygen and hydrogen, known for its soapy feel and is often used in baby powder.
The company has faced lawsuits from consumers and their survivors who claim J&J’s talc products caused cancer due to contamination with asbestos.
Talc is mined from the earth and is found in seams close to that of asbestos, which is a material known to cause cancer.
J&J has repeatedly denied the allegations and in its latest announcement said: “Studies show talc is safe, does not contain asbestos and does not cause cancer.”
In 2022, J&J said it would stop making and selling its talc-based baby powder around the world.
The announcement came more than two years after it had ended sales of the product in the US.
“As part of a worldwide portfolio assessment, we have made the commercial decision to transition to an all cornstarch-based baby powder portfolio,” J&J said at the time.
Orange B and Citrus Red No. 2 are both petroleum-based additives.
Rep. Pat Fallon, R-Texas, expresses concern over low munition stocks and rising tensions with Iran.
Ford Motor Co. is pursuing what could be its biggest military contract in decades as it competes to build a new tactical truck for the U.S. Army.
The automaker has secured a Department of War contract to develop three prototypes based on its F-Series Super Duty pickups, The Wall Street Journal reported Monday.
The competition comes as the Pentagon taps automakers to replenish and modernize military equipment strained by global conflicts, according to the outlet.
“We are excited to start work on this Army contract and look forward to delivering several incredibly capable vehicle types that demonstrate the value Ford can provide to the Army and soldiers,” a Ford spokesperson told FOX Business in an email.
FORD TO USE APPLE MAPS SOFTWARE IN SELF-DRIVING TECH FOR NEW EV PLATFORM
The Ford Motor Co. Michigan Assembly plant is pictured in Wayne, Michigan, on March 23, 2020. Ford is pursuing what could be its biggest military contract in decades. (Anthony Lanzilote/Bloomberg via Getty Images)
The spokesperson said Ford’s Super Duty trucks are engineered for “extreme durability” and demanding conditions, making them an “ideal platform” for military use.
Ford Pro also offers global service and parts support, along with technology aimed at improving vehicle uptime, the spokesperson noted.
“Ford’s off-the-shelf solutions can deliver unmatched capacity and scale, cutting-edge technologies, and the rugged capabilities that can offer game-changing value and performance and meet the needs of governments and the military in a highly cost-effective way just as we do with our commercial customers,” the spokesperson said.
FORD REHIRES EXPERIENCED ENGINEERS AFTER AI MISSES THE MARK
Workers assemble Ford vehicles at the Chicago Assembly Plant on June 24, 2019, in Chicago, Illinois. The spokesperson said Ford’s Super Duty trucks are engineered for “extreme durability.” (Scott Olson/Getty Images)
The move puts Ford in the running alongside rival General Motors (GM), which is developing a similar tactical truck.
GM unveiled its prototype in 2024, and the military has begun field testing it, according to The Wall Street Journal.
In addition to the two automakers, the Army has awarded a prototype contract to BC Customs LLC, a Utah-based off-road vehicle manufacturer, according to The Detroit News.
For Ford, the program could represent its largest military vehicle opportunity since the Cold War, the outlet reported.
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FORD ISSUES URGENT ‘DO NOT DRIVE’ ADVISORY FOR BRONCO SPORT, MAVERICK MODELS OVER SUSPENSION DEFECT
GM Defense’s Next Gen tactical vehicle is shown in an undated company photo. The move puts Ford in the running alongside rival GM, which is developing a similar tactical truck. (General Motors)
In May, Ford said it had been in discussions with governments in North America and Europe about using its commercial vehicles and software to support defense needs.
The company said some governments already use Ford vehicles for military transport and security operations.
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The Department of War referred FOX Business to the U.S. Army, which did not immediately respond to a request for comment.
Earnings call transcript: KIT posts resilient H1 2026 results as FFO rises 14%
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