Bears vs Bulls: Harshad Mehta rip-off to COVID-19—Prime 7 greatest inventory market crashes in India’s historical past

Inventory market crash: The Indian inventory market faces the warmth of home and international triggers after extending its shedding streak for the third consecutive week and reaching its lowest ranges since June 2024. Home benchmarks, Sensex and Nifty 50, logged their worst day in round 5 months, with the NSE benchmark posting its longest month-to-month shedding streak within the final 29 years (since 1996), dragged by overseas capital outflows amid US tariff fears.

Nevertheless, promoting stress from exterior triggers is nothing new for the Indian inventory market. Historical past tells us that the frontline indices have confronted far worse crashes within the final 30 years. From enduring the brunt of large banking scams to international financial slowdowns, Sensex and Nifty 50 have witnessed stellar highs, corrections, and recoveries, pushed by the resilience of home traders amid India’s sturdy macroeconomic fundamentals. 

Based on D-Road analysts, India’s long-term development story has supported the inventory market sentiment. Corrections and breathers are most typical after logging report highs. The BSE benchmark is down 14.86 per cent from its peak of 85,978.25 on September 27, not too way back. Coming to historic knowledge, let’s check out the highest seven greatest inventory market crashes in India’s historical past:

Prime 7 greatest inventory market crashes in India’s monetary market historical past

1.Harshad Mehta Rip-off (1992)

The inventory market crash was triggered by the Harshad Mehta securities rip-off when the stockbroker manipulated inventory costs utilizing fraudulent funds. The Sensex shed 56 per cent from its final peak, falling from 4,467 in April 1992 to 1,980 by April 1993. The crash took almost two years to stabilise. 
 

2.Asian Monetary Disaster (1997)

The market crash was attributable to regional forex collapses, gripping a lot of East and Southeast Asia throughout the late Nineteen Nineties. In December 1997, the Sensex barometer plunged over 28 per cent from 4,600 to three,300. It took one 12 months for it to recuperate and log new highs.
 

3.Dot-com Bubble Burst (2000)
The inventory market crash was precipitated as a result of collapse of the tech bubble. Sensex slumped from 5,937 in February 2000 to three,404 in October 2001. The index shed a complete of 43 per cent throughout the occasion. The inventory market recovered progressively after traders shifted focus from tech to different sectors.
 

4.Election Shock (2004)
The sudden victory of the UPA coalition in 2004 precipitated panic amongst traders. Sensex dropped 15 per cent intraday on Could 17, 2004, triggering a buying and selling halt. Nevertheless, the benchmark recovered from the election shock inside 2-3 weeks.
 

5.International Monetary Disaster (2008)
Lehman Brothers’ collapse within the US and the subprime mortgage disaster triggered a world recession. The Sensex dropped over 60 per cent from its peak of 21,206 in January 2008 to eight,160 by October 2008. The federal government’s stimulus measures and international liquidity helped a rebound by 2009.

6.International Slowdown (2015-2016)
China’s market crash, commodity value crash, and home non-performing property (NPAs) precipitated the inventory market crash. The Sensex shed over 24 per cent, from 30,000 in January 2015 to 22,951 in February 2016. Regardless of the crash, the Sensex recovered inside 12-14 months amid India’s financial resilience.

7.COVID-19 Crash (March 2020)