Most Significant Stock Market Crashes in Indian History and How Each One Changed Overall Landscape of Financial Markets

The Indian stock market, like any other, has seen its share of booms and busts. Here’s a look at the major crashes that shaped investor sentiment and regulatory changes over the years.

1. The Harshad Mehta Scam – 1992

One of the most infamous crashes in Indian history, the 1992 crash was triggered by the Harshad Mehta scam. Mehta manipulated the market using fake bank receipts to drive up stock prices, especially in blue-chip companies. When the scam was exposed, the Sensex fell sharply, wiping out massive investor wealth and leading to significant reforms in market regulations, including the introduction of SEBI's stronger oversight.

2. The Dotcom Bubble Burst – 2000

The early 2000s saw global markets crash due to overvaluation of tech stocks. Though India was less exposed than the U.S., the impact was still felt. The Sensex dropped as investor enthusiasm waned, particularly in IT stocks. This marked a period of correction and consolidation in the tech sector.

3. Global Financial Crisis – 2008

The 2008 Lehman Brothers collapse sent shockwaves across global markets. The Sensex fell over 50% in a year, from around 21,000 in January to below 9,000 by October. Foreign institutional investors pulled out funds, and Indian markets saw a steep decline. Recovery was slow but steady, supported by fiscal stimulus and policy measures.

4. COVID-19 Pandemic Crash – 2020

The onset of the COVID-19 pandemic caused panic selling worldwide. The Sensex plummeted by over 38% in March 2020. Lockdowns, uncertainty, and a global slowdown triggered the fall. However, aggressive monetary easing and digitization fueled a surprisingly quick recovery, with markets touching new highs by the end of 2021.

5. Adani Group Sell-off – 2023

A sharp fall in Adani Group stocks following a report by Hindenburg Research raised concerns over debt and valuation practices. Though not a market-wide crash, the sell-off triggered a loss of over $100 billion in Adani market cap and shook investor confidence, especially among retail participants.

These crashes, while painful, brought lasting changes in regulation, transparency, and investor awareness. Each fall taught new lessons, ultimately strengthening the resilience of Indian markets.

This Content Sponsored by Buymote Shopping app
BuyMote E-Shopping Application is One of the Online Shopping App
Now Available on Play Store & App Store (Buymote E-Shopping)
Click Below Link and Install Application: https://buymote.shop/links/0f5993744a9213079a6b53e8
Sponsor Content: #buymote #buymoteeshopping #buymoteonline #buymoteshopping #buymoteapplication