My footsteps into the Indian Stock Market..

On Jan 19, 2009, I got a good business and earned some 15k in that week. Two weeks before that..to be precise on Jan 9th the Corporate India was in for a shock coz the markets didn't seem to recover soon. It was the 7000 crore Rs. Satyam fraud. For those who didn't understand economics, the newspapers were just a piece of crap coz there was nothing other than this news. The Stock Markets had collapsed and the investors had lost faith in the stocks. Just check out these figures:

Satyam Stock lost 77% of value and is ended the day at 40. 14 crore shares were traded in the BSE Sensex while 33 crore shares were traded in the Nifty.
On December 16, when Satyam Computer Services (Satyam) declared that it wants to buy Maytas, it triggered investor activism, forcing the software giant to retract.
Buoyed by the power of shareholders, fund houses started stocking up the company’s shares, lured by its strong balance sheet and cash reserves of Rs 5,040 crore. Fund houses, including HDFC Mutual Fund, Tata Mutual Fund, ICICI Prudential Mutual Fund and a host of others, hiked their stakes.

For instance, ICICI Prudential mutual fund bought another 35,00,000 shares (314 per cent) and HDFC mutual fund bought 54,00,000 shares (106 per cent). Others like Franklin Templeton mutual fund added 17,28,000 shares and Tata mutual fund bought 2,65,000 shares of the now-tainted company last month.

On Jan 09,2009 the share value reached an all time low of 11.50 Rs. By then the markets had lost about 2,600 crores. But this had kept the people on their toes and so was I. By the time I got my money for the business, I knew the moment had arrived. The share value had increased to 48.75 Rs. per share and it was on Feb. 6th,2009 I first entered the Stock Market. It wasn't a big risk that I took coz it was a long term investment for me. And now with Tech Mahindra taking over 38% stake in satyam I'm hoping the Share value goes up and I dont have to turn back.

Basic rule in stock markets:

Never hold even a single stock when a fraud is broken out in a Company. Exit immediately even with big losses. That's why Swiss Finance exited from Satyam with Rs 500 crore losses. That's why Aberdeen Investments exited with more than Rs 1,000 crore losses (estimates).