16 May, 2021

The 60,000 Cr Crash

That’s what investors lost on April 4 when IT scrips led the dive

The 60,000 Cr Crash

Praveen Gupta, 54, is mighty miffed. A stockmarket veteran, Gupta had always prided himself on being a cautious investor-the kind with 50 per cent stock, 40 per cent bonds and 10 per cent cash in his portfolio. With wife and three daughters, Gupta felt at home with solid, safe blue-chips. But last year, something happened to break Gupta’s 20-year-old habit.

NASDAQ hit the stratosphere. NASDAQ-listed Infy and Sify were quoting at 100-150 times premium on their BSE prices. He thought local stocks had to follow the US lead. He topped his portfolio with the Silverlines, Sierra Optimas and Visualsofts and, instead of booking profits, he held on. Then on Tuesday, April 4, Gupta and hundreds like him lost hundreds of crores. "Damned if you don’t buy IT. And damned if you do," he mutters.

What a crash that was! One new economy stock after another hit the lower circuit breaker, investors turned to non-IT stocks for profit-booking, mutual funds offloaded on selling pressure. There was simply no exit route. By the end of the day, investors were poorer by a...

In this article:

More from Neerja Pahwa Jetley

Latest Magazine

May 24, 2021

other articles from the issue

articles from the previous issue

Other magazine section