The Indian stock market has witnessed a sharp correction in recent weeks. The Sensex has dropped nearly 3,800 points (over 4.4%) from its all-time high of 86,159 recorded on December 1, 2025, while the Nifty 50 has slipped more than 1,100 points (around 4%) from its peak of 26,373 on January 5, 2026.
This downturn has left many retail investors worried, especially those who have been consistently investing through Systematic Investment Plans (SIPs). The pressing question is: Should you stop your SIPs during such volatile times?
Expert Opinions on SIPs During Market Corrections
- Long-term perspective matters: Market experts emphasize that SIPs are designed to ride through volatility. Stopping SIPs during downturns defeats the purpose of averaging costs.
- Rupee-cost averaging advantage: When markets fall, SIP investors buy more units at lower prices, which reduces the average cost per unit over time.
- Historical resilience: Past corrections, including the 2008 financial crisis and the 2020 pandemic crash, show that investors who continued SIPs benefited significantly when markets recovered.
- Discipline over timing: Experts caution against trying to time the market. Consistency in SIPs builds wealth more reliably than reacting to short-term fluctuations.
Why Markets Are Falling
Analysts attribute the recent decline to multiple factors:
- Mixed corporate earnings failing to meet expectations.
- Foreign fund outflows amid global uncertainty.
- Weakness in IT and banking stocks dragging indices lower.
- Global trade tensions and concerns over US interest rate policies.
Should You Stop SIPs?
The consensus among experts is clear: No, you should not stop your SIPs.
- Stopping now means missing the opportunity to accumulate units at lower valuations.
- SIPs are meant for long-term wealth creation, not short-term speculation.
- Investors should instead review asset allocation and ensure diversification across equity, debt, and hybrid funds.
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Conclusion
The recent fall in Sensex and Nifty is unsettling, but it is part of the natural cycle of markets. SIPs are built to withstand volatility, and pausing them during downturns can harm long-term wealth creation. Investors should stay disciplined, focus on diversification, and rely on expert guidance to make informed decisions.
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