The Indian stock market reached 52 week high just two weeks back and was remaining very firm on the back of heavy foreign fund flows. But in the last one week, the market has corrected by a whopping 10%, only due to massive profit booking by few of the major foreign funds, apart from increasing fear of tighter liquidity in the near term.
The Indian central bank had increased the statutory liquidity ratio by a massive 100 basis points just last week which started the downfall.
Indian stock market sinks