MARKET EYE- Indian shares on way to biggest single-day fall in nearly 16 months

* India's main BSE index falls 2.5 percent, while the

broader NSE index is 2.6 percent lower, heading towardstheir biggest single-day percentage fall since Feb. 27, 2012.* Bonds, shares and commodities fell sharply around the world onThursday and the dollar rose after the U.S. Federal Reserveexplicitly signalled an end to easy money and data showedChina's economy slowing.
* The Indian rupee slumped to a record low on Thursday, whilestocks and bonds were hit, after the Fed signalled a tapering ofits monetary stimulus, highlighting the country's dependence onforeign capital inflows to fund its current account deficit. * Shares of large-cap private banks fall as traders fear thathigh foreign holding in these stocks makes them more vulnerable,as a sell-off after the Federal Reserve signalled an eventualend to free money.
* ICICI Bank Ltd, with 37.94 percent FII holding,falls 4 percent, while HDFC Bank, where FIIs hold34.07 percent of total shares, is down 3.9 percent.
* Traders also worry an end to the U.S. monetary stimulus couldlead to portfolio outflows, pushing the rupee lowerand, in turn, delaying any rate cuts from the central bank.