Market Crash Reasons: Despite the huge lead of NDA in Bihar elections 2025, the Indian stock market did not show any momentum. Weak global signals, especially in the US, Japan and Asian markets, a huge decline is being seen. Know what are the reasons for the decline in the market…
Bihar Election Results Impact on Share Market: By the time the results of Bihar elections 2025 come, the big victory of NDA is almost certain. Exit polls had already predicted a landslide victory for the NDA, so the stock market was also expecting the same result. But on Friday the market environment was completely opposite. In the morning, the Sensex slipped by 400 points to 84,042, however, by the time the market closed, it closed with a gain of more than 139 points and the Nifty 50 fell by half a percent in the morning to 25,751, but closed with a gain of 36 points at the last moment. That is, as big as NDA’s victory in Bihar was, the market movement did not look that spectacular. In such a situation, the question is that even when the victory is as expected, why is the stock market not rising and what are the reasons for its decline?
earthquake in global markets
Even though the Indian market may have fallen today, it still looked much stronger than the rest of the world. There was a big fall in America last night, S&P 500 fell by about 1.7%, Nasdaq fell by 2.3%. There was turmoil in Asian markets also. Japan Nikkei crashed 1.77%, Hong Kong Hang Seng crashed 1.5% and Korea Kospi crashed 3.6%. Amid such heavy global pressure, India’s fall of 0.5-0.6% is being considered a very small setback. Meaning, if global markets had not been so bad, then the positive effect of Bihar elections could have taken the Indian market higher today.
Bihar election results are positive, but US market spoiled the game
Market experts are saying that the Indian market has actually shown strength today, otherwise the fall could have been even bigger. If there were no bad signals from the US market and pressure from Asian markets, a strong rally would have been seen in India today. NDA’s better than expected victory is positive for the market.
Delay in India-US trade deal
In recent weeks, there was hope that there would be a big announcement on the trade deal between India and America. President Donald Trump himself has said that the deal is very close. But no final announcement has been made yet. Due to this, there is a little fear in the market that whether India has compromised too much? Is the deal stuck somewhere? Will the conditions be against India? Till these questions are answered, investors are trying to play it safe.
Panic about AI stocks
Another big tension is the huge fall in US stocks related to AI. Some people are calling it a new tech bubble. However, experts do not agree with this. He says that this is not a bubble. The comparison with the tech bubble of 2000 is wrong. Nasdaq’s PE was 70 then, today it is 32. AI companies are in profit. What is happening right now is just profit booking.
future of indian market
According to market experts, India’s market is strong in the long term. Q2 results were decent, Q3 is expected to be even better, valuations of major stocks have come down and FPI selling has reduced. But only limited rally may be seen in the next one year, as the global environment is still uncertain.