The 2011 year provided a nightmarish experience to the investors. The stock markets hit low by the deteriorating financial catastrophe. As per the estimates an enormous amount of above 20 lakhs were lost by the investors in the 2011 year.

There are various reasons, both national as well international for this failure. Some of them are the constant increasing rate of interest, relentless high rates of inflation, economic activity slowdown, depressing IIP’s (Index of Industrial Production, reduced US credit rating, crisis in Euro zone, low down GDP growth, and the list is endless.

During the previous twenty months, in order to keep the pressure on Inflation under control, the RBI increase key rates as much as thirteen times. As projected previously, the forecast for the present financial has been reduced from 8% to 7.6% by the Reserve Bank of India. In the year 2011, the sensex hit very low. The stock market witnessed more downsides than upsides and a number of IPOs collapsed, and in the pipeline, a number of IPOs were put on hold.

Last year, the major drivers in the market, the FIIs (foreign institutional investors), when it comes to equity turned negative. In 2011, the FIIs made belligerent sell offs. A majority of blue chip stocks hit a 52 week low in 2011.

As the year 2011 left, leaving awful impacts, what can an individual can expect in this year 2012?, will the same nightmarish trend persist and get more severe, or to be more optimistic, will things get back to normal. Is it an appropriate time to enter into the market?

As per the forecasters, this is the apt time for an individual to begin gathering the stocks. Since the blue chips have hit a record low, one should collect these stocks and hold on till it gives good returns. The essentials and also the nitty gritty things of these companies are good. Only there are some issues that influence and damage their assessments. For instance due to the slide in rupee value, many companies that depend on imports suffer major loss on exchange rates.

Once the rupee value gets steady, all things will get straightened. Likewise the companies, which depended on exports and which got benefited by the erosion in rupees, are losing their foot hold because of the wearing down in demand for exports.

With the growth in economy still slower, the company earnings in the business sector is anticipated to fall still lower, which is obvious from the latest tax collections in advance. This has not augmented, which denotes that the companies are not anticipating a bright picture in the near future.