What to do with the Stocks When the Market is Bear?

07 Dec 2021|

2 min read |

by ICICI Securities Team

Introduction

The economy and the stock market move in a continuous cycle, time and again. As a new investor, you must understand the different economic stages and make your investment decisions accordingly. There are unique periods called the bull market and the bear market, and they both come with their overtones.

The bull market is when the financial market rises, and the stock prices increase. Meanwhile, the bear market is where the costs of the securities fall, and there is pessimism in the industry-leading to a downward trend. Investors must act as per the market movement and buy or sell securities accordingly.

What to do in the bear market?

The bear market causes a drop in the price of securities. The decline happens over a period, or it is abrupt. But the result is the same, a decline in the value of your holdings. When the bear market comes into play, it works against you if you sell the stocks if you need money urgently. Owing to falling stock prices, short-term investors end up in losses.

If the intention to hold your investment is for years, buy in the bear market. The ideal time to sell the stock is when the demand is high. Do not make the mistake of selling the stock in the bear market. The best you can do is buy. Some experts warn investors about the crash and let you plan the investment accordingly.

Tips for a bear market

The bear market appears dreadful for investors, and they naturally assume that they will lose money, but it is also the phase of opportunities. Do not run away from the bear market; instead, do the following:

Avoid panic selling

The last thing to do in a bear market is sell in panic. It makes you make wrong decisions that have heavy consequences. Do not use your emotions during this time and use your head. Never sell out of fear. You might see the holdings lose their value with time but panicking only increases the losses. So, stay calm and do not sell.

Be practical

Keep your emotions in check and not be jittery when the market falls. Do not fear the fall and think about why you started investing in the first place. If you have invested for the long-term, you need not worry. The stocks rise with time, and you need not rush it. Have a practical approach towards investment and keep your emotions aside.

Take stock of the situation

Understand the financial situation before making a move. Your money is at stake, and you must ensure that it is stable. Ensure that you have an emergency fund and manage your debts well. Go through a financial checkup and then proceed.

Choose well

The bear market is where some excellent stocks go down and allow you to buy. Some of the best buying opportunities had appeared when the stock market was down. There may be many misplaced stocks whose prices have gone up because of the market correction. And as an investor, you must choose the right stocks. This is a time to make the most of the dip in high-priced stocks and make them yours.

The bear market is not all about losses and negativity. It offers a chance to buy all that looks affordable, and it may not have a disastrous ending. Buy and hold for the long-term; the stock market never remains the same, and what goes down always goes up.

Disclaimer

ICICI Securities Limited has its registered office at ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. The non-broking products / services like iLearn and Financial Learning are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. iLearn is not an exchange traded product/service of ICICI Securities Ltd. All disputes with respect to the activity on the platform would not have access to Exchange investor redressal or Arbitration mechanism.

ICICI Securities Ltd. is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. ICICI Securities Ltd. is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. Name of the Compliance officer (broking): Mr. Atul Agrawal, Contact number: 022-69997051, E-mail address: complianceofficer@icicisecurities.com Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. ICICI Securities Ltd. and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Such representations are not indicative of future results. The securities quoted are exemplary and are not recommendatory. AMFI Regn. No.: ARN-0845. PFRDA registration numbers: POP no -05092018. ICICI Securities Ltd. acts as a Composite Corporate agent having registration number -CA0113. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, Alternate investment funds, Tax planning, Succession planning, NPS, IPO, Investment Advisory and Loans related services are not Exchange traded products and ICICI Securities Ltd. is acting as a distributor to solicit these products. Please note, Insurance related services are not Exchange traded products and ICICI Securities Ltd. is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

Did you enjoy this article?

2 people liked this article. Share Feedback

Recent Articles

View all

HOW TO TRADE GOLD IN COMMODITY DERIVATIVES MARKET IN INDIA

Gold is one of the world's most actively traded precious metals and is widely used for investment, jewellery and industrial applications. It is also considered a safe-haven asset during periods of economic or market uncertainty.

323 views

3 minutes

07 Sep 2026

Global Commodity Exchanges: NYMEX, COMEX & LME and Their Link With MCX

In this article, we’ll explore the three exchanges that matter most: NYMEX, COMEX, and the London Metal Exchange (LME) and their link with MCX.

493 views

1 minutes

31 Aug 2026

Mainboard IPO: Meaning, Eligibility and Key Benefits

Explore the meaning of a mainboard IPO, SEBI's eligibility routes, NSE and BSE listing rules, key benefits, and the checks investors should make before applying.

1 k views

4 minutes

13 Aug 2026