For some sock market watchers, April 7 brought back memories of Black Monday — the infamous global market crash of October 19, 1987. While the scale and context differ, the sense of uncertainty and domino effect from global events feels eerily familiar.
This isn’t the first time the Indian stock market has seen such a steep drop. Here's a look back at some of the worst single-day crashes in the country’s financial history:
The early '90s saw the Indian market rocked by its first major scam. Harshad Mehta, a stockbroker, was found guilty of manipulating stock prices using fake bank receipts. When the ₹4,000 crore scam came to light, the Sensex nosedived.
Crash date: April 28, 1992
Fall: 570 points or 12.7%
This incident led to sweeping reforms and greater powers for the Securities and Exchange Board of India (SEBI).
In 2001, another stockbroker, Ketan Parekh, was caught manipulating shares in what became another high-profile scam. Add to that the dot-com bust and the Gujarat earthquake, and markets had little to cheer.
Crash date: March 2, 2001
Fall: 176 points or 4.13%
The markets were caught off guard by the general election results in 2004. The United Progressive Alliance (UPA) unexpectedly ousted the National Democratic Alliance (NDA), raising doubts over economic reforms. Panic selling led to a halt in trading not once, but twice.
Crash date: May 17, 2004
Fall: 11.1%
When Lehman Brothers collapsed in the US, it triggered a worldwide financial crisis. India wasn’t spared.
Crash date: January 21, 2008
Fall: 1,408 points or 7.4%
Over the following months, the Sensex fell almost 60% from its peak, marking one of the worst bear phases in the market’s history.
Nothing had prepared the world for COVID-19. When India announced a nationwide lockdown, investors feared the worst.
Crash date: March 23, 2020
Fall: 3,935 points or 13.2%
This remains the most severe single day fall in India’s stock market history. However, with government and RBI interventions, the markets bounced back over time.
While it’s too early to predict how long the current volatility might last, analysts are closely watching global cues, especially any developments around US trade policy and the broader impact on international trade. Some suggest that if global tensions ease, the markets could stabilise. Others believe that more turbulence could be ahead.
For now, investors might want to brace themselves — just in case the rollercoaster ride isn't over yet.
(By arrangement with livemint.com)
