A falling stock isn't always a sell

When the price of a stock falls sharply on a single day, the immediate impulse is to exit

On July 18, shares of ITC fell 13 per cent after the Goods and Services Tax (GST) Council decided to increase the cess on cigarettes. Often, when a stock witnesses a big decline within a day, herd mentality sets in and investors stampede towards the exit. Experts suggest that in such situations, investors take some time to weigh the prospects of the underlying business and then come up with a measured response.  

Avoid the impulse to sell: When there is a steep fall in the price of a stock, many small investors get jittery and feel they have suffered