Bloodbath on Dalal Street: Why You Shouldn't Catch a Falling Knife

April 7, 2025, will be remembered as a brutal Monday for Indian equity markets. As seen in the heatmap above, almost every stock was deep in the red, some plunging over 7–14% in a single day. From big names like Tata Steel (-7.77%) and Trent (-14.77%) to blue-chip giants like Infosys (-3.78%), HDFC Bank (-3.28%), and Bajaj Auto (-4.92%), the market witnessed a wide-scale panic.

But here’s the real question:
Should you be buying this dip? Or is it time to wait it out?

❌ Don't Catch a Falling Knife

When markets crash, it’s tempting to think,

"Wow, this stock was ₹1000 last week, now it's ₹800. Let me grab it cheap!"

But trying to buy during a crash is like catching a knife mid-air — it can cut deep.
Why? Because you don’t know how far it will fall.

Many stocks look "cheap" today, but in times of panic, prices often overshoot on the downside before they find real support. Entering too early can lead to bigger losses and emotional stress.

🕰️ Patience Pays: Wait for Stability

In investing, timing isn't everything, but temperament is. After a fall like this:

• Wait for volatility to cool down

• Let markets form a base or consolidate

• Watch for volume and trend reversal signals

Remember, even the best stocks fall during panic — it doesn’t mean they’ve lost value permanently. But your entry timing can make all the difference between profits and pain.

“Be fearful when others are greedy and greedy when others are fearful.” – Warren Buffett
Yes. But only after the knife has hit the ground.
📉 Was Today the Worst Market Fall Ever?

To give perspective, here's a look at some of the worst one-day crashes in Indian stock market history:

📅 Date📉 Index Fall🔍Reason
Jan 21, 2008: Sensex -1408 pts (-7.4%): Global financial crisis triggered early signs
Mar 23, 2020: Sensex -3935 pts (-13%): COVID-19 pandemic panic
Apr 7, 2025~Widespread stock fallReason not fully known yet (likely macro + FIIs exit)
May 17, 2004Sensex -565 pts (-11%)Political uncertainty – UPA wins, Left allies fear
Oct 24, 2008Sensex -1070 pts (-11%)Lehman Brothers collapse aftermath

🌱 Ultimate Value Takeaway

At Ultimate Value, we believe in building resilient wealth — not chasing hype, fear, or panic. The best investors are calm, methodical, and patient.

What you should do now:

• Revisit your asset allocation

• Keep a watchlist of quality stocks

• Wait for the market mood to settle

• Consult your financial advisor (or reach out to us 😉)
  

📩 Want us to guide you through this market chaos? DM or call anytime!