Click to play videoNew Delhi: 2008 began for Dalal Street above 20,000. There was euphoria all over and everyone wanted to join the party. Ten months down the line the Bombay Stock 30 Share Bencharmark Index is down 41 per cent, below the 12,000 mark.
So how is this bear hug hurting retail investors?
"I have invested Rs 3 - 4 lakhs. At present my value is Rs 80,000 - 90,000 and round 60-70 per cent down," says an investor.
Another says he is nervous and tense because his portfolio has gone down.
Yet another says that he would like to take his chances because he is a long-term investor and will hold whatever he buys for a year or two.
Opening at 12,284.50, the Sensex plunged to 11,741.70 on Monday - the lowest in two years. It finally ended in the red at 11,801 mark.
The Nifty too slipped to its lowest level since March 20, 2007 and closed down at 3,602 down 215 points.
Analysts blame the current volatality on the Indian bourses to Wall Street meltdown. Foreign institutional investors are pulling money out from India and $2 billion in equities from the Indian stock markets was pulled out in September.
Many Wall Street firms who have been betting big on India are now pulling out to meet their cash requirements back home.
Director & CEO Reliance Money, Sudip Bandyopadhyay says, "I do not think that there has been any deteoriation in the fundamentals of India, still there are a lot of worries and there are financial institutions that are going bankrupt and they are selling all their stakes in India so they are causing a lot of pressure."
So does this mean the end of Bull run on the Indian market? Analysts believe it will take some time for confidence and investors to return in a big way to Wall Street. Money will till then switch to safer investment options like gold and silver.
For those who do not want any risk, cash is king at the moment.
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