7 April 2025 : Indian equity benchmark indices suffered heavy losses on Monday amid concerns of a global trade war and growing recession fears in the United States.
s markets opened, Sensex crashed 3,939.68 points to 71,425.01 in early trade, while Nifty tumbled 1,160.8 points to 21,743.65. All 13 major sectors logged losses.
IT companies, which earn a significant share of their revenue from the US, lost 7%. The broader small-caps and mid-caps lost 6.2% and 4.6%, respectively.
Monday’s crash is the biggest opening fall in the Indian markets since the Covid pandemic struck in 2020.
Here’s a look at some of the biggest stock market crashes in India
- Harshad Mehta scam (1992)The stock market experienced a severe downturn following the infamous Harshad Mehta securities fraud, where the broker artificially inflated stock prices using fraudulent funds.
- Between April 1992 and April 1993, the Sensex plummeted by 56%, nosediving from 4,467 to 1,980 points. The aftermath lingered for nearly two years before markets found their footing again.
- Asian financial crisis (1997)In 1997, the ripple effect of collapsing currencies across East and Southeast Asia led to a sharp decline in the Indian stock market. By December of that year, the Sensex had dropped over 28%, sliding from 4,600 points to 3,300 points. It took about a year for the market to regain strength and hit fresh highs.
- Dot-com bubble burst (2000)As tech stocks lost their shine, the early 2000s witnessed a significant market correction. The Sensex fell from 5,937 points in February 2000 to 3,404 points by October 2001 — a 43% drop. Gradual recovery followed as investor attention moved beyond the technology sector.
- Global financial crisis (2008)The 2008 market crash was triggered by the collapse of Lehman Brothers and the unfolding subprime mortgage crisis in the United States. The Sensex plunged over 60%, tumbling from 21,206 points in January to 8,160 points by October. A mix of government stimulus and improved global liquidity contributed to a recovery the following year.
- The Covid crash (March 2020)The outbreak of Covid-19 and the subsequent global lockdowns brought markets to a halt in March 2020. The Sensex lost 39%, falling from 42,273 points in January to 25,638 points. Swift and aggressive fiscal and monetary interventions sparked a sharp, V-shaped recovery by the end of the year.
Summary: Explore the five biggest stock market crashes in India’s history, including causes, impact, and how they reshaped investor confidence on Dalal Street.