Dark Days of Dalal Street: India’s 5 Worst Market Crashes

The Indian stock market witnessed a major meltdown last week, driven by weak global cues, concerns over Donald Trump’s proposed tariffs, and a growing shift in investor sentiment towards the ‘Sell India, Buy China’ narrative.

On Friday, both Sensex and Nifty plunged nearly 2%, with Sensex crashing over 1,400 points and Nifty dropping 420 points. Over the past five trading sessions, the Sensex has lost nearly 2,200 points, marking a 3% decline.

As investors panic over market volatility, let’s take a look at India’s worst stock market crashes, examining their causes and the impact they had on investors.

Recent Stock Market Crash: What Happened?

Key Reasons for the Market Plunge

Global Uncertainty: Weak economic data from global markets and renewed fears of a slowdown.
Donald Trump’s Tariff Concerns: Reports suggest that Trump may impose new tariffs on multiple nations, leading to fears of trade disruptions.
‘Sell India, Buy China’ Narrative: Investors are shifting capital towards China amid expectations of economic recovery and favorable policies in Beijing.
FIIs Pulling Out: Foreign Institutional Investors (FIIs) have been selling Indian equities, further pressuring stock prices.

How Much Did the Market Fall?

Sensex:

Closed at 73,198, down 1,400 points (-1.90%) on Friday.
Lost 2,200 points (-3%) in five sessions.

Nifty:

Ended at 22,124, down 420 points (-1.86%) on Friday.

This sharp correction has rattled investors, but it’s not the first time India has witnessed a stock market meltdown. Let's take a look at five of the worst stock market crashes in India's history.