Finally, the equity market has come under selling pressure and when it happened, it wasn't a pleasant scene. In the first two trading sessions, the markets went into a selling mode as if there was no future for equity and though there was a mild recovery in Wednesday's trading, the under current was far from comforting. While the short-term trend continues to be volatile, the time has come for investors to go back to the basics of investing.

For a good part of 2007, this was completely forgotten, as the index had turned a sprinter by adding 800-1,000 points in a matter of a few days. In 2007, big rallies were to the tune of 600-700 points in a day's trading and the Sensex rallied from 17k to 19K in a matter of few trading sessions. What aided the rally, of course, was the relentless fund flows from global investors who now have fewer exciting markets besides India. It was the same investment community which hammered the stocks though there was also enough support from the local traders who had built positions beyond their capabilities. As a result, the super profits of 2007 disappeared in a matter of two trading sessions. Though local mutual funds and institutional investors did their shopping, it couldn't stem the negative pressures on the market. With foreign institutional investors (FIIs) still preferring to book profits and keeping away from Dalal Street, one wonders whether the equity story has lost its steam.

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