It will take time for this to happen. Markets are extremely nervous. It is ironical that Indian institutions are selling while foreign institutions are buying. Many banks will have to take hits to the bottom-line due to concentrated exposure on capital market intermediaries and exposure to some cooperative banks. We have seen a sustained downward movement in the stock markets worldwide.
Market is never a one-way street.
The fall in technology stocks has had some sympathetic effect on the old economy stocks, too. However, there have been many investors who refused to take exposure to technology stocks when the valuations were very high. Such investors are now beginning to see value in technology stocks. In the next six months, I expect the market to rise gradually. Investors should make full use of this benefit.