The turmoil in India's stock markets has wiped out over Rs 8 lakh crore from investors' wealth in just five sessions as S&P BSE Sensex fell around 4.6%. The assurances by the government and regulators have not helped much as the market is gripped by a certain panic, triggered by home finance companies and non-banking finance companies (NBFCs). 

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Other near-term headwinds such as increasing oil prices, concerns over stock valuations and reports over the US-China trade talks being called off have all added fuel to the fire. Finance minister Arun Jaitley has already stated the government would take all measures to ensure adequate liquidity for NBFCs and mutual funds.

The Reserve Bank of India (RBI) is likely to inject additional liquidity through open market bond purchases. They can also give an additional line of credit to NBFCs and MFs. This should pacify markets, now caught in a contagion of a sell-off in the banking and NBFC segments. Some analysts believe that the slide is not over, yet. A rate hikes by the US Federal Reserve, crude oil price spurt and rupee fall will surely have a sway on the overall sentiment.

Analysts warn that the rate-sensitive stocks and the mid and small-caps may continue to go on a roller coaster. Ideally, the investors should stay clear of them and focus on fast moving consumer goods (FMCG), pharma and healthcare sectors, which look relatively safe.