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After expressing concerns last week about the Indian stock market hitting record highs, the Bombay Stock Exchange (BSE) lost almost 800 points or 5.66% in the next four trading sessions after the Reserve Bank of India (RBI) decided to raise the cash reserve ratio to curtail inflation and reign in excess liquidity. The RBI asked banks to increase the cash reserve ratio by 50 basis points to 5.5%, leading to a drop of 7.43% in the ADRs of India’s leading bank ICICI Bank (IBN) and a drop of 5.85% in HDFC Bank (HDB) over three trading sessions.