Published : 02 Mar 2023
Harshad Mehta single-handedly caused the 1992 stock market crash, the largest in India in terms of percentage. During that period, the BSE experienced a 12.77% fall.
BSE fell by 842 points during the 2004 crash. Securities and Exchange Board of India (SEBI) investigated this incident to discover that the crash resulted from UBS carrying out a large amount of selling orders for anonymous clients.
One of the worst stock market crashes in India, with long-lasting effects, when SENSEX suddenly fell by 617 points on 2nd April 2007. It witnessed another fall of 615 points on 1st August 2007. It was the third-largest loss for the index in Indian history. The stock market continued to crash regularly for the rest of the year, too.
The Great Recession hit the world in 2008, the effects of which appeared as a fall of 1408 points in BSE. It affected the investors significantly and resulted in a loss of wealth. SENSEX experienced a dip of 875 points on 22nd January 2008 and another 834 points on 11th February 2008. On 24th October 2008, SENSEX fell by 1,070 points again. It was the second-largest intraday SENSEX crash.
The crash which was resulted from panic selling in Indian and Chinese markets after a slowdown in witnessed in Chinese market, caused an 854-point drop in SENSEX on 6th January, and 1,624 points drop on 24th August 2015 and a more than 490 points drop in NSE According to experts
Investors witnessed four consecutive falls of over 1600 points in BSE by February 2016 as the crashes continued. This was due to the increasing numbers of Non-Performing Assets (NPAs) in India’s banking industry and other global events. Another crash arrived in November 2016 on account of demonetization
The year 2019 witnessed a 400-point dip in SENSEX and a NIFTY crash of 10,850 points as the US Federal Reserve dashed expectations of a long cycle of rate cuts. The crash continued in the Indian stock market due to the signs of economic slowdown and low quarterly earnings. As a result, investors in BSE lost ₹13.70 lakh crore after Budget 2019.
The recent outbreak of COVID-19 that resulted in a pandemic and lockdowns around the world led to a huge market crash in global and Indian markets. From the day the World Health Organization (WHO) declared the virus as a pandemic, the Sensex dropped from 42,273 points to 28,288 points within a week. This coincided with the Yes Bank crisis causing the strong BFSI sector to lose crucial points too.