As uncertainties prevail and a revival expected only post second quarter of 2009, it will pay to focus on large cap companies with a proven track record, high earnings visibility and low leverage.
The year 2008 has been one of the worst years in the history of Indian stock markets. The BSE Sensex has fallen 56 per cent and individual stock by as much as 75 per cent from their peak levels in January. Globally, many countries are in a recession and domestic growth rates, too, have plummeted.
India's industrial production has decelerated significantly due to slackening demand, and many companies are cutting production, laying-off employees and postponing capacity expansions. The once robustly growing IT services sector, too, is faced with a gloomy outlook as its major customers are in recession. Export-oriented sectors like textiles, gems and jewellery, leather and apparels are also facing the heat on this count.
While the impact of these developments on financials of companies will ...more

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Avoid stocks which are like Suzlon it is trading at 60+ down 90% from its high and you still hope that it will come to 45 in that case better stay away from such stock!