Swinging Sensex scorches investors

By Aditya Kalra

NEW DELHI (Reuters) - Things were going quite well for Sanjeev Jain. For nearly twenty years, the stock market had been kind to this investor from Chandigarh, helping him lead a comfortable life with his profits.

But in one fell swoop this January, Jain lost his investment of ten million rupees when the stock market plunged from a record high amid fears of a global downturn.

"It took just three days and my wealth was reduced to zero," said the 36-year-old divorcee. “This market is nothing but a legalized gamble."

Thousands of investors like Jain have had their lives turned upside down by the yo-yoing effect of stocks since January -- rallying on good news one day, dipping into negative territory the next.

The BSE Sensex, considered the barometer of its once booming economy, has lost 58.3 percent in 2008, making it one of the worst performers in Asia.

Thursday’s close of 8,451.01 was its lowest since Nov. 10, 2005.

In a bid to recoup his earlier losses, investor Dharmendra Verma ventured into derivatives trading, which involves speculating about the future movement of stocks and indices.

Not only did he lose his investment, Verma was fired from the Delhi-based brokerage firm where he worked, part of a cost-cutting exercise brought on by the fluctuating market.