Massive de-leveraging and credit crunch driven by the US and spreading to Europe has led to widespread selling across asset classes including equities with bigger selling in commodities & real estate. The selling has been aggravated by redemption pressures driven by the fear about economic slowdown and collateral damages seen elsewhere. Globally we have witnessed an increased policy response by various central banks and governments with aim of providing stability to financial markets; notably the credit market and improve the business environment and sustain economic momentum. Closer home, we believe that Indian economy is largely driven by domestic consumption (67% of GDP) and infrastructure creation and is expected to be more resilient than other emerging economies. The economy is expected to do well over medium to long-term as Government & RBI has stepped in with policy response on fiscal and monetary front respectively. In the last quarter we have seen possibly biggest monetary easing in Indian history. The macro economic environment & the growth would be supported by declining commodity prices and peaking out of interest rates would further help on demand. We maintain that it is reasonable to expect India's growth to sustain over a longer period. Equity market valuations have compressed significantly and present a very attractive investment opportunity and equity as an asset class will continue to give better returns than any other asset class in the medium to longer term. Large caps tend to better fare in an uncertain economic environment and also tend to bounce back faster and provide better risk adjusted return profile. We maintain that to benefit from short-term volatility of markets, SIP/STP is the preferred way of investing. On the other hand with horizon of 18-24 months even lumpsum investment looks attractive option at current levels.