The benchmark index of the Bombay Stock Exchange, Sensex, saw it biggest fall in three months on Wednesday, plunging 467 points, or 2.8 per cent, to close at a 12-week low of 16,408 points.
Shares were stung by a German ban on naked short sales — speculative sale of securities by people who do not hold them — in European government bonds, triggering worldwide market falls.
The National Stock Exchange’s 50-share Nifty also fell 2.9 per cent to close at 4,919.
Software engineer Vaibhav Pathak, who is a regular investor in stocks and mutual friends said he was frozen on his tracks. “I have not made any investment in the past four or five months. I am really worried about the money I have already put in.”