Sharpest stock slump in six months: Factors that caused markets to crash

Indian stocks slumped the most in six months as a rating downgrade by Morgan Stanley and a central bank plan to drain liquidity soured sentiment in the world’s best-performing major market.
 

The S&P BSE Sensex slid 1.9% in its biggest loss since April 30, with heavyweight bank shares being the biggest drags on the benchmark. The drop comes amid rising investor concern about valuations after the gauge more than doubled from its March 2020 lows.

The Reserve Bank of India said late Wednesday that it will drain cash from the banking system for longer periods, spurring concern the move