Stock Markets

However, there appears to be a silver lining to the dark clouds enveloping the markets. In the current scenario, only the foreign institutional investors (FIIs) hold the key which can jump start the markets.

But before that happens, authorities would have to remove certain restrictive barriers such as the tiresome registration procedures which take more than three months. An up and running depository system would also be an added bonus, which is expected to commence by the year-end.

This, coupled with the fact that Indian stocks are now available at very low P/Es compared to other emerging markets, should enable FIIs to take up positions in defensive stocks, where FII limits are yet to touch the mandatory 24 per cent ceiling.