Sensex tanks over 1,000 points: What should your portfolio strategy be?

Indian markets witnessed a significant sell-off following the global market rout on Tuesday, with the Nifty50 and the S&P BSE Sensex slipping over 3%. The BSE Mid-cap and BSE Small-cap indices underperformed the frontline benchmarks, losing over 4% in intra-day trade.

The rout came after US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.

Analysts say the correction was long overdue after the sharp run up in calendar year 2017 (CY17), and