The Index of the Bombay Exchange Sensitive Index (Sensex) – the benchmark index of the Bombay Stock Exchange (BSE) has lost 25% since its May 10th peak. It is the oldest stock index in India.  The Indian market lost 331.34 basis points today alone in an unpredictable bout of seesaw trading.

A commentator from Mumbai reported, “Concerns over liquidity and mutual funds redemption are dogging market sentiment. “Liquidity is going to tighten. The easy availability seen over the last two years is not going to remain. And with commodity prices ruling high, corporate numbers will not look too attractive. Added to this there have been rumours of a leading mutual fund calling up to stop redemption. There is total withdrawal of buying interest,” said a dealer.”