Experts advise caution, but say broad story intact

Ashish Kapur, CEO of Invest Shoppe, advises, "One should use the weakness to buy because the broad picture still looks interesting. What is happening today is more related to the global cues, so avoid sectors like IT, metals, which are more influenced by global cues."

"But apart from that, I think the broad story, which is the infrastructure story of India, still remains intact. So a good time to buy into stocks, which are dependent on India’s consumption story, India’s infrastructure growth story," he continues. 

Speaking to CNBC-TV18, Raamdeo Agrawal of Motilal Oswal Securities Ltd said that he sees further correction in the Indian markets. He has advised caution on back of the global situation. He said, "Markets must take cognizance of what is happening around the world. The banking system in US, which is the mother of all capital markets is in such a dire state where giants like Citi Bank, Merrill Lynch and UBS Bank and everybody is announcing quarterly losses of USD 10 billion and USD 14 billion, so I think it is a big shock. But there is a lot of global cooperation also, where immediate recapping of these banks are also happening, thanks to liquidity available around the world. But these are times when one should be a bit cautious about what can happen on the dollar. These are uncharted territories, so I am a bit cautious right now."