In a fiercely declining market, no one is spared. This is exactly what happened in 2011, which proved to be a very difficult year for investors. Usually, in a difficult scenario, investors turn to stocks in the ‘A’ group as they provide some solace. In 2011 though, even these did not perform up to expectations. Around 100 ‘A’ group counters underperformed the Sensex, which witnessed a significant decline of 24 per cent. The worst part for stocks in the ‘A’ group was that around 49 counters lost more than 50 per cent in value, with a few even closing at their 52-week low levels. Many investors entered these so-called defensive counters, only to get stuck as the scrips continued to get eroded. In some cases, the losses have been more than 80 per cent! In short, investors got a rude shock from a space that usually provided comfort.

We are sure a whole lot of investors would be confused about what to do with these investments that have turned sour. What is the future of these stocks? Is it time to get rid of these counters and park the money somewhere else? Or is this steep fall an opportunity to buy into these counters? Here, we provide you with an objective analysis of seven beaten down counters in order to help you make an informed decision on what to do with them now.

The list of beaten down stocks is quite a long one, and it is not possible for us to provide guidance on all of them due to space constraints. Since we had to be selective, we have picked those scrips that have a larger following and which would hence address a large number of shareholders.