Click to play videoMumbai: A worried Alloudin Poonawala is going through the pink papers. The last few days has been tough for this veteran investor who has been investing in the stock market for the last four decades.
The markets have been on a free fall and Alloudin is busy counting his losses. Though he managed to exit some stocks he is still Rs 1 lakh in the red.
"The market has collapsed. It will take certainly more than two to three months to pick up again. So if small investors haven't booked profits in time, they'll have to wait for a long time to recover their losses," says he.
But has the stock market hit rock bottom or is there yet more room on the downside?
A bigger fall will mean more heartburns for Indian investors because the Sensex has already lost more than most global markets.
February - March 2007
- The BSE Sensex has lost 10.5 per cent
- The Bovespa in Brazil was down 5.8 per cent
- The Hanseng was down over 5 per cent
- Straits Times was down 4.3 per cent
However, the joker in the pack has been the Shangai Composite which has gained 5.9 per cent in the last one month.
But experts say that rise and fall are part of the DNA of the markets.
Says Equities Head, ABN Amro AMC, Prateek Agrawal, "If you look at the last fall in May, the market recouped all of that in two months. What needs to give investors a lot of strength is the fact that this is a multi year growth story and this should be seen in terms of a short term correction."
Investors like Poonawala could also gain relief from the fact that FIIs during this period have been net buyers in the Indian markets, showing perhaps all is not lost when it comes to making money from the stock market.
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