Blood on the floor
What a change a few weeks can do in the life of a stock market. At the begining of the year, there were predictions of the BSE Sensex reaching 24,000. Post the battering that the markets have received in the past 2 odd weeks, it would be great if the markets can come back to 21,000 levels.
Of course nothing can be predicted about the future. The market conditions might become better, the Egypt political crisis might be solved, the companies could come out with better results in the next few quarters, the government might get tough on graft and a few politicians & their crony businessmen might end up in jail.
Meanwhile, some of the best blue chip stocks and companies with strong fundamentals have been beaten down 20-40%. This is another of the great time for a fence sitter to invest. I have done too.
At the end of last year sold off Suzlon Energy, Reliance Communications (my worst investment ever. I would never buy any Anil Ambani companies again) and Punj Lloyd (another laggard not only on the stock market, but also in business). I had sold them off for a loss. It would have been a bigger loss if i had held them on as all 3 of them have been beaten down very badly.