Reliance down 16% takes index down by 9% - We had cautioned you on September 1

On September 1, we had clearly warned that Reliance Industries can take the Indian stock markets down sharply. Reliance has since dipped from Rs.2,136 on August 31 to a low of Rs.1,800 on September 16 - a dip of about 16% and the Bombay Sensitive Index from 14,565 on August 31 to 13,263 today - down by whopping 9%. The writing was clearly on the wall but the majority of the market experts / brokerages ignored it - leaving Investors / traders trapped at higher levels. At 14,500-15,000 levels of the index, many leading Indian brokerages including an expert from Karvy reiterated a number of times on TV that he was sure that the index will climb to 16,000-17,000 levels shortly. Sample this : in his book 'Swim with the Sharks' - Harvey Mackay writes 'You'll always get the good news, its how quickly you get the bad news that counts'.