Markets Tumble on Global Cues: These Were the 5 Biggest Stock Crashes in India's History

Benchmark indexes Sensex and Nifty plunged by around 4 percent and 4 percent respectively on the 7th of April, triggered by the fear about a potential trade war as a result of China's counter-measures against US Trump's reciprocal tariffs. The move has caused worries of recession. Despite the rout as a result of this threat of growth Indian equity market crash to their worst selling.

Here are the biggest market crashes witnessed by Indian market throughout the past few years:

A look at the Harshad Mehta scam, 1992:

The stock broker Harshad Mehta had allegedly used loopholes within the banking system as well as Bombay Stock Exchange transaction system to manipulate price of shares of businesses. The "Big Bull" was accused of stealing cash using fraudulent bank transactions (BRs) and then pumping stock prices, inflating stock prices by an astounding 4,400%. The BSE Sensex rose from 2,000-mark in January 1992 to 4,400-mark in March 1992.

Lehman Brothers collapse, 2008 market crash:

The most devastating crash took place in 2008, when the demise of US bank huge Lehman Brothers sent shockwaves all over the world's financial systems. Financial and banking confidence institutions plummeted, causing foreign investors to rapidly withdraw their money from emerging markets such as India. Sensex Nifty, Sensex and Nifty 50 both fell more than 60 percent below their peak levels in the year as the selloff continued to grow after.

Election Day result, 2024:

The results of 2024's Lok Sabha elections were declared on June 4, and although the BJP-led NDA was able to secure a majority getting 300 seats within the Lok Sabha, BJP fell short of a majority of its own and missed the halfway mark by over 30 seats. The results were surprising because many exit polls predicted that BJP was likely to return to power with a large margin.

The reciprocal tariff of Trump 2025:

Indian market prices are in a an upswing, mirrored by the market panic that has spread across different asset classes like precious metals, equities, and crude oil, shook with US Donald Trump tariffs, as well as counter-measures imposed by the EU as well as China. Sensex dropped 4 percent to be at 72,485. Nifty in turn fell by nearly 1,000 points to reach close to 22,000.