Allaying fears that the Indian stock markets will collapse, Finance Minister P Chidambaram assured on Tuesday that the Indian stocks markets are sound and still very attractive for investors.
He said that the finance ministry was watching the situation round the clock.
The finance minister also said that Indian banks are well capitalised and regulated, and there was no fear on that count.
Asserting that foreign institutional investors are not selling all the time, the finance minister said that what has happened in the stock market in the last week of so is a direct result of global financial carnage.
Although India is still a stead and strong market, some effect of global meltdown would be felt in the local stock market, he said.
Referring to the rejection of $700-billion bailout package by the US House of Representatives, Chidambaram said, "Bailout package is a concern of US Congress and the US government.
"It is agreed by everyone that bailout is necessary. How the Congress will reconcile to the views of two major political parities, it is not for me to comment."
He said, "Of course, we will be greatly helped if a bailout package is quickly approved by the US Congress."
Chidambaram expressed hope that the US would resolve its differences and pass a bailout package within the next couple of days.