While I appreciate your intention of assuaging the feelings of the Indian Investors whose fingers have been badly burnt, I do not agree with the content of your post.
What 'mistake' did people who are long term investors make who were holding stocks with less than 10 PE or in some cases stocks with even less than 5 PE? You would be right in saying that those who were chasing overpriced and over-hyped stocks like RNRL, RPL, Ispat, Essar Oil, Reliance Energy etc. were overcome by their greed and that's why they had to pay for their 'sins'. It is completely understandable if you were admonishing people who were in such stocks for their 'mistake'.
But what mistake did a person who was holding a JK LAKSHMI CEMENT LTD., for example, make?
*That stock was trading at a PE of 3.7 at the price of 172 just one week ago. It was available at 109 today and the PE shrunk to 2.4!!
*The company has a confirmed annualized EPS of 47 for FY2007-2008.
*It has been posting spectacular results for the last six quarters in a row.
*Capacity enhancement from 3.5 million tonnes to 5 million tonnes on schedule.
*Captive Power Plant of 36 MW fully stabilized. Annualized savings of approx. Rs.30 crores.
*High cost debts of Rs. 325 crores replaced.
*Interim dividend of 10%. Record date is 30th Jan, 2008.
The point I'm making here, dear Udayan, is that NOT EVERYBODY WHO WAS INVESTED IN THE INDIAN STOCK MARKET MADE A 'MISTAKE'. IT WAS A SYSTEMIC FAILURE. People were FORCED to sell even their good stocks by their brokers. Why did this forced selling take place? What exactly was wrong with the system of Margin Calls which led to this bloodbath?
Instead of just writing off the Indian Investors' intelligence as a 'mistake', you should use your good offices to find out the REAL CULPRITS BEHIND THIS BLOODBATH. To me, this bloodbath reeks of a scam, which should be investigated.