Stock Market Crash: Investors Lose ₹4 Lakh Crore in Just 15 Minutes Ahead of Budget

New Delhi: The Indian stock market faced a sharp sell-off on Friday morning, with both the Sensex and Nifty plunging significantly, wiping out investor wealth worth approximately ₹4 lakh crore in just 15 minutes.

The BSE Sensex fell by nearly 625 points (0.75%), hitting an intraday low of 81,941.03, while the Nifty 50 dropped 194 points (0.75%) to 25,224.35, retreating well below the 25,300 level. As a result, the total market capitalization of BSE-listed companies declined to ₹455.73 lakh crore.

Five Key Reasons Behind the Market Drop

1. Budget-Related Concerns:
   With the Union Budget 2026 scheduled for Sunday, investors remained cautious. Finance Minister Nirmala Sitharaman is expected to present her ninth budget, and markets are waiting to gauge its impact on India’s economic growth and corporate earnings. According to Dr. V.K. Vijaykumar, Chief Investment Strategist at Geojit Investments, the budget brings both challenges and opportunities, prompting investors to stay on the sidelines.
2. Weakening Rupee:
   The Indian rupee remained near record lows against the US dollar, stirring concerns about capital outflows and import-driven inflation. In early trade, the rupee recovered slightly by 7 paise to 91.92, after hitting a record low of 91.9850 in the previous session, contributing to market volatility.
3. Rising Crude Oil Prices:
   Global crude prices surged to their highest levels in five months due to rising tensions in the Middle East and fears of a potential US strike on Iran. For India, a net oil importer, higher crude prices raise concerns over inflation, current account deficit, and increased production costs for companies.
4. Global Risk Aversion:
   A cautious global environment dampened risk appetite. Friday morning saw volatility in Asian markets following geopolitical and policy developments. US President Donald Trump announced support for a bipartisan deal to avoid a government shutdown and confirmed his Fed nominee, triggering renewed uncertainty in global markets.
5. Technical Signals:
   Technical indicators also pointed to short-term weakness, adding to investor caution. Analysts note that while recent rallies helped Nifty recover from key support levels, sustaining gains at higher levels remains uncertain without fresh market triggers.

Summary: Friday’s sharp decline underscores how budget-related uncertainty, global developments, and technical factors can quickly impact investor sentiment. With the Union Budget just days away, market participants are likely to remain cautious until fiscal clarity emerges.