- Indian stock markets suffered their worst losses ever on Friday, with the Sensex index falling over 10% and the Nifty index falling over 12%, marking the largest single-day decline in their histories. - The losses were driven by large-scale selling by foreign institutional investors exacerbated by weak global cues and the RBI's decision to keep interest rates unchanged. - Analysts believe the losses reflect a global liquidity crisis exacerbated by the rising yen, forcing hedge funds to sell assets worldwide to repay yen-denominated loans, and expect further market declines and economic impacts in the coming years.