A dejected broker in his office on Friday. Picture by Amit Datta

Harish Sharma (name changed) is unflappable as he answers hundreds of investment queries on his cellphone and two landlines during a normal day in office. Friday left him flustered.

Instead of rattling off tips on what to buy or sell, the 30-something executive was busy dealing with one paranoid investor after another as the sensex slid over 800 points to end the day at 10,527.85, the lowest in over two years.

“I received over 50 calls in less than 30 minutes of trading at the start of the day. The sensex had shed around 1,000 points by then and everyone wanted to know about the future of their investments,” said Harish, sipping tea in front of his terminal after a hard day’s work.

The scene was much the same at the other brokerage houses. Clients, both high net-worth individuals and retail investors, kept firing questions that executives like Harish found difficult to answer.

“Should I sell now and minimise the losses?” one investor asked.

“How long will this bloodbath continue?” another cried.

“Where should I put my money now?” a third wondered.

Manish Arora (name changed) said he didn’t have a clue where the markets were headed. “I am telling people to stay invested. But honestly speaking, I don’t know what will happen when the markets open on Monday,” he mumbled, stealing a glance at the television screen next to his terminal.

Finance minister P. Chidambaram’s announcement about bank investments being safe and steps taken by the RBI to ensure liquidity failed to lift the spirits of investors.

Retail investors, many of whom had entered the market around January to cash in on the bull run when the sensex crossed 21,000, were inconsolable.

“I had a portfolio worth over Rs 2.5 lakh with a good mix of banking, technology and realty stocks. I have already lost around 50 per cent of my investment,” said Sanjay Tiwari, sitting in his broker’s office at Lyons Range.

Tiwary’s broker advised him to hold on to the stocks but the trader, who deals in bearings, appeared confused.

“I had invested in stocks in the hope of getting high returns and am cursing myself for it. I had planned to redeem a part of the returns on my investment before Diwali but there is little to withdraw now. The dilemma for me is whether to stay invested because I don’t know whether the prices of stocks will decline further,” said Tiwary, the stress showing in his eyes as he took off his gold-rimmed spectacles.

The rise in the price of 24-carat gold in Calcutta’s bullion market — it opened at Rs 14,565 per 10gm, Rs 1,565 higher than the previous close — added to the sensex shock.

Demand for gold jewellery and other metals increases in the festive fortnight and peaks for Dhanteras. In the north and west, buying gold or other precious metals during the festive season is believed to be auspicious.

“Demand has declined this season because gold has become dearer since the beginning of this month,” said an official of the West Bengal Bullion Merchants & Jewellers’ Association.

On the flip side, the bloodbath on the bourses has prompted some high net-worth individuals to explore the bullion market.

“People looking for safe investment options beyond the stock markets are switching to gold and silver, which is also contributing to the rise in gold prices,” a representative of Karvy Comtrade, which deals in commodities, said.