It’s been a rough Friday for Indian investors. If you checked your portfolio this afternoon, you probably saw a lot of red. The Indian stock market took a massive hit on February 27, 2026, with the Sensex plunging nearly 1,000 points and the Nifty 50 sliding below the crucial 25,200 level.By the time the closing bell rang, roughly ₹5 lakh crore of investor wealth had simply vanished. But what exactly triggered this late-session panic? Let’s break it down in plain English.The "Late Sell-off" Drama The day actually started on a quiet, almost boring note. However, as the afternoon progressed, the selling pressure turned into a landslide. Heavyweights like HDFC Bank, ICICI Bank, and Reliance—the pillars of the index—all started dragging their feet. Even the auto sector felt the heat, with Maruti and M&M dropping around 2% each.Why Is the Market Crashing? It isn't just one thing; it's a "perfect storm" of factors:The GDP Jitters: With India’s latest GDP data scheduled for release, traders are playing it safe. There’s a fear that the numbers might show a slight cooling off, and nobody wants to be caught holding the bag if the news is disappointing.The "Trump Effect": Global markets are still reacting to new trade and tariff policies coming out of Washington. Since the US is India's biggest export partner, any hint of protectionism makes investors very nervous about our IT and manufacturing sectors.The AI Scare: There’s a growing "structural fear" that advanced AI tools are starting to eat into the traditional Indian outsourcing model. This has made the IT index incredibly volatile lately.FII Selling: While domestic investors (DIIs) are trying their best to support the market, Foreign Institutional Investors (FIIs) have been on a selling spree, pulling thousands of crores out of Indian equities.The Silver Lining (Yes, There Is One) It wasn't bad news for everyone. A few stocks managed to swim against the tide. HCL Tech and Infosys saw some "value buying" as they recovered slightly from earlier lows. Meanwhile, Redington Ltd was a surprise superstar, jumping over 12% on high volume.What Should You Do? Technically, the Nifty is in a "wait and watch" zone. It's currently hovering near its 200-day moving average a level where long-term investors usually step in. If it holds here, we might see a bounce next week. But for now, the mood on Dalal Street is definitely “handle with care.”
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