Shock In The Stock Market, Here's What Hidden Triggers Caused The Big Crash?

Mumbai: On Friday morning, the Indian stock market opened under heavy global pressure. Asian markets fell up to 2 percent, and last night’s sharp sell-off on Wall Street further dampened domestic investor sentiment. From the opening bell, the market remained weak and stayed under pressure throughout the session. Weak global cues, continuous FII selling, and caution around the final Bihar election results directly impacted the indices.

Bihar Election Results: Why the Panic?

The Bihar election turned out to be the biggest trigger for the day. Early trends showed the NDA moving toward a decisive victory, but analysts believe the market had already priced in this win. According to Analysts, whatever the outcome, its impact will be short-lived, as long-term trends depend on earnings and GDP growth. InCred Research warned that if trends unexpectedly reverse or deviate from projections, the market could face a 'coalition discount,' potentially dragging Sensex–Nifty down by 5–7 percent.

Global Weakness: Wall Street and Asian Markets Slide

Wall Street witnessed a significant sell-off overnight. The Nasdaq slipped 2.3 percent, the S&P 500 fell 1.7 percent, and the Dow Jones declined 1.7 percent. Major tech stocks like Nvidia came under pressure as investors no longer expect an early rate cut. Recent comments from Federal Reserve officials also suggested that rate cuts are not imminent, weakening global market sentiment. Asian markets followed suit and slipped sharply.

Rising Crude Oil: A Double Blow

Brent crude surged 2.71 percent to reach USD 60.28 per barrel. Higher oil prices are bad news for India, as they raise import costs and increase inflationary pressures. Both government finances and corporate margins get adversely affected by rising crude.

FII Selling and Uptick in VIX

Continuous foreign investor selling added to the market’s troubles. On Thursday, FIIs sold shares worth Rs 383.68 crore. The India VIX also rose 1 percent to 12.30, indicating heightened caution and the possibility of further volatility ahead.

Technical View and Impact of Q2 Results

Analysts believe that despite Friday’s fall, the broader trend remains positive. Nifty failed to sustain above 25,980, yet the uptrend may extend toward 26,130–26,550. Support is now seen near 25,789.

Additionally, several major companies will release their Q2FY26 results today, which will significantly influence Monday’s market sentiment.