There have been many instances where the Indian stock market has crashed due to scams or global market sentiments. Now we will show you the five stock market crashes in India.
1. Market crash of 1992
This year was regarded as the largest fall in Indian history in terms of percentage due to the Harshad Mehta (Big Bull) scam. As most of us must have watched the web series named “Scam 1992” to witness the scam he made. It may be noted that during the year, BSE experienced a leap of 12.77 per cent. For those who don’t know about Harshad Mehta or haven’t watched Scam 1992, Harshad was a stockbroker who was mainly remembered for manipulating the stock markets and the securities scam. He had a total of 27 criminal charges against him, but the one involving stock manipulation is the reason that led the market to the crash.
2. Market crash of 2004
In this crash, BSE (Bombay stock exchange) fell by 842 points. in this year, the market regulator SEBI found out that the crash was caused due to a foreign institutional investor UBS, which was one of the largest sellers of shares in 2004. As per the India Today report, the firm had carried out large-scale selling orders on behalf of unidentified clients.
3. Market crash 2007
This crash was considered one of the worst financial stock market crash, 2007-08 were the two worst years for the Indian equity market. On 2nd April 2007, Sensex sharply fell by 617 points. Similarly, on 1st August, Sensex crashed 615 points and regarded as the third biggest loss in absolute terms of the index. In the whole year, the Indian stock market crashed with regular dips of over 700 points.
4. Market crash of 2008
2008 is known as the year of the Great Recession and while India was not affected significantly, the global climate pulled down India’s stock market indices. On 21st January 2008, the Bombay Stock Exchange (BSE) fell 1408 points and led to one of the largest falls in investor wealth. Again on 22nd January, Sensex fell by 875 points and then again plunged 834 points on February 11 the same year. Few days after that, on 3rd March, Sensex again fell by over 900 points and on March 17 which registered another slump of 951 points. On October 24, the BSE Sensex dropped 1,070 points, the second-biggest intraday.
5. Market crash of 2015 and 2016
On 6th January 2015, the stock markets crashed again as Sensex dropped down to 854 points. As per the experts, “A slowdown in Chinese markets, due to which there as rapid selling of stocks in both China and India. Apart from that, poor first-quarter results by Indian companies also led to the loss. In February 2016, BSE had fallen over 1600 points in four consecutive sessions. The main cause that created the dip was rising NPAs within India’s banking system and numerous other global weaknesses. Many experts pointed out demonetisation for triggering market crashes starting November 2016.
