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Reflecting the turmoil in the stock markets world wide, two recent IPOs in India had to be hastily withdrawn. The companies affected were Wockhardt, the healthcare provider and the realty developer, Emaar MGF.

The global turbulence in the IPO market saw as many as 10 US companies withdraw their IPOs so far in 2008. In Europe too the renowned fashion brand Tommy Hilfiger had to withdraw a two billion dollar floatation.

India till now seemed relatively unaffected by the global trend with 3.3 billion dollars being raised by IPOs by various companies since the beginning of this year. This was the highest for any country and nearly 50 % of the total IPO proceeds worldwide in 2008 , says the Economic Times.

Market gurus advocate extreme caution while trading but are not quite ready to press the panic button. They say, as a matter of fact, that this is the right time for investors (with investible money) to accumulate ‘fallen angels’ and the much pounded blue chips and hedge themselves well in futures market.

One should start investing when stock prices have depreciated significantly,” says Park Financial Advisors’ director Swapnil Pawar, adding, “Investors should try to spot out ‘fallen angels’ in the market.

Fallen angels are stocks that have fallen 20 to 30 times as far PE (price-to-earnings) multiple is concerned.” However, a word of caution: Never try to invest in a stock trading high on thin volumes. Try the reverse — pick stocks trading on high volumes but low prices. “Seasoned investors can also try investing in index futures,” adds Mr Pawar.

About a month ago, Merrill Lynch strategists had predicted that India’s stock market, one of the world’s most expensive, is likely to be a safe haven for investors in 2008. For one thing, the Indian economy is less dependent on the US economy as compared to China.