Share Market Crash / Indian stock market has crashed 8 times so far, you must learn these things from history

Share Market Crash: The Indian stock market continues to decline, due to which lakhs of crores of rupees of investors have been drowned. It is difficult to say how the market will be in the future, but this is not the first time the market has crashed like this. In the past too, the Indian market has faced a huge decline many times and every time it has emerged again. Let us know how many times the Indian stock market has seen a big decline so far and how the recovery happened after that.

1. Harshad Mehta Scam (1992)

In 1992, the Harshad Mehta scam caused a big decline in the stock market. After this scam, the Sensex fell by 56% from its highest level. The Sensex fell from 4,467 in 1992 to 1,980 in April 1993. It took two years for the market to recover after this decline.

2. Asian Financial Crisis (1997)

The Indian market was also affected due to the Asian Financial Crisis in 1997. The Sensex fell from 4,600 to 3,300 points in December 1997, a decline of 28%. It took almost a year for the market to recover.

3. Dot-com Bubble Burst (2000)

The dot-com bubble was created in 2000 due to heavy investment in the IT sector, but the bubble burst soon. The Sensex fell from 5,937 in February 2000 to 3,404 in October 2001. The market recovered slowly after a decline of about 43%.

4. Lok Sabha Elections (2004)

The unexpected victory of the UPA alliance in the 2004 general elections shocked the market. On 17 May 2004, the Sensex fell by 15% and trading had to be halted due to excessive selling. However, the market recovered within two to three weeks.

5. Global Financial Crisis (2008)

The bankruptcy of Lehman Brothers in the US and the subprime crisis led to a global recession. The Sensex was at 21,206 in January 2008, which fell to 8,160 by October 2008. That is, there was a decline of 60%. However, due to the government's relief package and policies, the market regained strength by 2009.

6. Global Recession (2015-2016)

In 2015-16, due to the decline in the Chinese market, falling commodity prices and domestic NPA crisis, the Sensex fell from 30,000 in January 2015 to 22,951 in February 2016. Despite a decline of 24%, the Indian market recovered in 12-14 months due to strong economic conditions.

7. Covid-19 pandemic (2020)

The Covid-19 pandemic led to a global lockdown in March 2020, which led to a massive drop in the stock market. The Sensex fell from 42,273 in January 2020 to 25,638 in March 2020, a decline of 39%. But the aggressive monetary and fiscal policies of the government led to a V-shaped recovery by the end of the year.

8. Current economic crisis (2025)

The Indian stock market is currently witnessing a massive decline. The announcement of tariff hike by the US President, fears of slowdown in Indian GDP, weakness in the rupee and selling by foreign investors are the main reasons for this. In the last five months, the Sensex has fallen by 11.54% and the Nifty by 12.65%, causing investors to lose Rs 92 lakh crore.

Conclusion: Learnings and strategies from the crash

History shows that the Indian stock market has recovered after every crash. After every crash, investors should adopt a long-term view and invest wisely instead of panicking. Investing in strong companies, understanding the market fluctuations and being patient—with these strategies, investors can benefit after every crisis.