History of India in regards stock market crashes

To understand efficiently a crash in the stock market is accounted to be a prompt fall in the double-digit indexes. Though it has been presumed to be accounted that the market significantly restores after the effect of the crisis but yet again in some facilitated cases the effect is said to have been perceived for a long time.

When it comes to the stock exchange the strained market seems to be extremely unpredictable. So hence why investors conjure numerous ups and downs in the flow of the market. To understand efficiently a crash in the stock market is accounted to be a prompt fall in the double-digit indexes. Though it has been presumed to be accounted that the market significantly restores after the effect of the crisis but yet again in some facilitated cases the effect is said to have been perceived for a long time.
So let’s not wait for any further run deep down in the elaborated cases of stock market crashes encountered in the past.

1865

It has been accounted that India experienced its first crash in the year 1865 and it has to say to have occurred even before the Bombay stock exchange was established. It was around that era when Parsi traders would deal with stock investments of the homegrown companies in the rears regions of Meadows Street and Rampart Row. In the year 1861, the American civil war had facilitated which then further led to the increase of the need for cotton, which at that time was the highest-selling export goods during that particular period. Which lead to a sharp rise in the price of cotton accounting have a great number of disturbances on the stocks of the establishment. Numerous people who made their living by selling off cotton also seem to conjured to have invested in the stocks of the company. Right after the Civil war ceased there was an indecisive amount of decrease in the want of cotton leading to a massive stock market crash.

1992

This stock market crash was popularly known as the Harshad Mehta crisis which caused Sensex to fall about 50% in one year. During that time, Harshad Mehta was said to be the leading name in the Indian stock market.
His known strategy was to inhabit stocks of a specific institution then increase its listing by facilitating to increase the demand of the commodities. To give an example let’s talk about how he invested in the shares ACC limited which was first incorporated to have its share ranging from Rs 200 but later he took them to an evaluation of Rs 9000 in the given time bound of 2-3 months. Leading him to siphon Rs1000 crore from the banks themselves. It is known to be the biggest scam in history which led to the Sensex of 2000 being at the point of 2500. Which further caused a bear market for almost two whole years.

2016

It has been noticed that the years 2015-16 were accounted to be one of the most difficult years for the stock market, globally. There was a continuous fall in the Sensex in the given year. Around February 2016 it was estimated to have fallen by 26%. The root cause for the issue was generally dedicated to having occurred because the Indian banks, accounted to have numerous NPAs and generic global weak spots. When in 2016 the Indian government exposed the radar of black money through demonetisation the Sensex came down to another 6 % which also lead to a great decrease in the Asain markets.

2020

It has been notified that the recent spread of COVID-19 which caused the situation of lockdown worldwide led to huge default in the market prices globally. The Sensex has said to be led down by 42,273 points to 28,288 points within a week. Since when WHO announced the virus to be a root cause of the pandemic. Thus leading to the Yes Bank crisis.

As we have seen above the stock market has perceived numerous stock crashes in the given years due to deflecting understandings. Hence which it is essential to keep a close eye on the drastic movements in the markets to restore oneself from such huge losses.

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