Down in the dumps. Will it rebound?

Investors often press the sell button as soon as a stock's price starts falling. However, it is always advisable to find the reason behind a falling stock price before acting in a hurry. The following qualitative and quantitative checks are useful to ascertain whether the nature of the fall in a stock price is temporary or permanent. Track record: If the company has a good track record of navigating downturns, then it is likely to survive tough times. Motherson Sumi, an auto-ancillary company, for example, faced a big blow in 2015 when its major client, Volkswagen, was banned from selling

This article was originally published on August 01, 2019.