Stock market
Stock Market Crash History: The Indian stock market continues to decline. Millions of crores of investors have drowned. Whether or not the market will return or not, it is difficult to say. However, this is not the first time that the Indian market has crashed. Even before this, the stock market has crashed many times. If we look at the history of the Indian stock market, then there has been a big decline in the market so far. If you are a stock market investor, you can learn from history and make your strategy. Let us know when and when the Indian stock market was in a rage and when the recovery returned again?
1. Harshad Mehta Scam (1992)
In 1992, a major decline in the stock market came due to Harshad Mehta Security Scam. Harshad Mehta was a stockbroker. Mehta manipulated the share prices using fraud -fraud funds. The Sensex then broke 56 from its record high. In 1992, the Sensex fell from 4,467 to 1,980 by April 1993. It took 2 years for the market to recover after this decline.
2. Asian Financial Crisis (1997)
The major decline in the stock market in 1997 occurred due to the Asian financial crisis. Due to this, in December 1997, the Sensex fell from 4,600 points to 3,300 points i.e. 28 percent. It took a year for the stock market to overcome and touch new heights.
3. dot-com bubble burst (2000)
The stock market declined drastically in 2000 due to tech bubble burst. In February 2000, the Sensex fell from 5,937 to 3,404 in October 2001, ie 43 percent declined. The stock market gradually improved after investors focused on other areas from tech.
4. Lok Sabha Elections (2004)
The unpredictable victory of the UPA alliance in 2004 created panic among investors. On May 17, 2004, the Sensex declined by 15 percent, which stopped the business due to excessive selling in the market. However, within the next 2-3 weeks, the benchmark index Intrade recovered from the election shock.
5. Global Financial Crisis (2008)
The fall of Lehman Brothers in the US and the subprime morning crisis gave rise to a global recession. In January 2008, by October 2008, the Sensex fell more than 60 percent to 8,160 from its summit of 21,206. The government’s incentive measures and global liquidity helped return to 2009.
6. Global Recession (2015-2016)
The decline in the Chinese market, the fall in commodity prices and domestic non-performing assets (NPAs) led to a decline in the stock market. In January 2015, the Sensex came from 30,000 to February 2016 to 22,951. In this way the Sensex fell 24 percent. Despite the decline, the Sensex recovered within 12–14 months due to India’s economic strength.
7. Kovid-19 decline (March 2020)
The stock market declined in March 2020 due to lockdown and economic uncertainty worldwide due to Kovid-19 epidemic. The Sensex declined by 39 percent, falling from 42,273 in January 2020 to 25,638 in March 2020. The government’s aggressive fiscal and monetary policies led to a V-shaped recovery despite the technical recession in the economy by the end of 2020.
8. Trade War and Economic lethargy (2025)
Currently, the major decline in the Indian market has come due to the announcement of the US President’s announcement to increase tariffs and the possibility of lethargy in the Indian GDP. Apart from this, weakening of the rupee, the selling of foreign investors is also the main Karan. The Sensex has fallen 11.54 percent during the last five months, while the Nifty has fallen by 12.65 percent. With such a huge decline in the market, about 92 lakh crore rupees of investors have been drowned.
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