Not Sexy anymore: Sensex plummets below 8000 mark!

Just few months back Sensex was the talk of the town and was considered sexier than all bollywood beauties put together. If you were not investing in stock markets, there was something wrong with you. From the retired public servants to the small businessmen and young executives, all were mesmerized with the sheen of Sensex. Everybody was happy!

Suddenly, times changed and Sensex was not so sexy anymore. Not even Diwali, Prime Minister, Finance Minister and analysts could save Indian Stock market from reaching its lowest mark in last 3 years. The  Sensex lost over 750 points to hit the histric low of 7939. Major losers, which pulled the Sensex down, were Grasim Industries, HDFC Ltd, State Bank of India, Larsen and Toubro, Tata Power and Wipro.

The major concern was that the government would not be able to take adequate steps resulting in the low earnigns of the companies. This was further fuelled by the fact that the Asian Markets were trading at relatively lower levels.

However, analysts still emphasize that this is the time to buy and not to sell. The general advise is that if the investment is done for a medium term taking 24-36 months time horizon, then any investment during this time would give you a 50-75% return.