The Mumbai Stock Exchange (BSE) witnessed one of the worst falls of 1992 after the infamous Harshad Mehta scam surfaced and the Big Bull was arrested. By May 1993, the benchmark Sensex had ranged from 4,467 times to around 2,529.
Stock market crash (representative image)
The chaos created on Black Monday in a transaction, Rs 19 billion was removed in the Indian stock market. But this is not the first time the stock market has suffered such a devastating collapse. At least five such incidents were the bloody baths on Dalar Street that created so chaos that BSE and NSE lost billions of rupees.
Harshad Mehta Scam, 1992
The Mumbai Stock Exchange (BSE) witnessed one of the worst falls of 1992 after the infamous Harshad Mehta scam surfaced and the Big Bull was arrested. By May 1993, the benchmark Sensex had ranged from 4,467 times to around 2,529.
Soon, the market began to slowly recover and restore its lost position. Sensex once again crossed 4,600 points after recovering 82% loss points in 1996. However, a series of measures, such as liberalization policies, have raised investors’ awareness and introduced stronger institutional safeguards, which has prevented the stock market.
Ketan Parekh Scam Crash, 2001
The stock market collapsed again in September 2001, when the Internet bubble burst was followed by the Ketan Parekh scam. BSE benchmark Sensex fell to 2,594 levels from 4,200 levels in September. The time spent recovered from a severe blow and began building momentum in 2003.
By mid-2004, when the BSE benchmark index climbed to around 4,200, the market recovered 62%. Strong GDP growth, booing in the IT sector, and rising global interest in India’s economic potential have driven the overall sentiment that ultimately drives the market.
Global financial crisis leads to 2008 collapse
Indian stock markets also suffered losses when the global financial crisis hit the world economy in 2008 and caused damage to global stock markets. Under the pressure of the financial crisis, Sensex fell from 21,000 points to about 8,000 points. In addition, global economic turmoil, collapse of major financial institutions and a sharp contraction of economic activity are the main factors in this move.
COVID-19 collapses stock market 2020
In March 1920, the outbreak of the Covid-19 pandemic also brought about a serious economic crisis. As global markets react to economic closures and uncertainty, it lowered Sensex from 41,000 points to about 25,981 points. After the government injected liquidity and lowered interest rates, the stock market showed flexibility and the stock market recovered quickly.
However, the market recovered rapidly. By November, Sensex climbed to 41,000 as it recovered 58% of the losses it suffered. BSE benchmark scaling over 60,000 and earnings over 130%. The market is rapidly growing by optimistic vaccines, inflows from foreign institutional investors (FIIs) and surge in retail investors’ participation.
Black Monday, April 7, 2025
President Donald Trump’s announcement of the U.S. reciprocal tariff regime proved so harmful that the Mumbai Stock Exchange (BSE) opened at a rate as low as 3,000 points on Sensex’s benchmark index.
After opening at 9.16 a.m. Monday, the BSE Sensex recorded a record of 3,072, down 4.09% to 72,296. The NSE index NIFTY50 fell 1,146 points, or 5%, to 21,758. This is not only the result of panic sales, but also the result of a widespread massacre on Dalal Street.
