The Bombay Stock Exchange’s benchmark Sensex index hit a record high of 21,206.77 points on 10 January, but followed it up with a sharp correction, losing some 21% to 16,729.94 points by 22 January in eight straight trading sessions. Since then, the fall has been unremitting. What seemed a “correction” in end-January has turned out to be much worse than that. The bears now hold India’s equity markets in a vice grip, with the Sensex losing some 38.26% since its peak. Brokerages did not see this coming. Most said in their research reports—released between 21 and 25 January after the sharp fall—that the pain was over and investors should seize the opportunity to buy stocks as India’s growth story was still intact. The reports also strongly recommended stocks investors should buy, with standard disclaimers. They got it all wrong. All of them have since been revising their estimates and outlook on stocks. Edited extracts of what some of the brokerages had said.
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