The sudden sharp fall in the Indian equity market on Wednesday surprised both investors and traders. BSE Sensex fell by nearly 830 points to around 81,349, while Nifty 50 slipped below the crucial 25,000 level. This decline was not due to any major earnings shock or negative fundamental news, but due to market structure and trading pressure. As the market went down, the leveraged positions started unwinding rapidly. Margin calls came from heavy MTM losses and selling started under compulsion. Selling by one trader forced another to sell, creating a chain reaction. Panic was more visible in mid-cap and small-cap stocks, especially due to aggressive selling in MTF stocks. Selling by FIIs remained limited, but high leverage and lack of buyers further increased the decline.