The Indian stock market suffered its worst single-day fall in history on Friday, with the benchmark Sensex index plunging over 10% to close at 8,701.07 points, down 1,070 points. The fall was attributed to widespread selling by foreign institutional investors due to the ongoing global liquidity crisis and the appreciation of the yen against the dollar. Analysts warned that the negative sentiment and volatility in global markets could continue to impact Indian equities for an extended period and that a full recovery may take 3-4 years. The RBI was criticized by some for not cutting rates to boost liquidity, though others felt this was prudent given inflationary risks.