Black Monday Returns: India’s Stock Markets Plunge, Echoing 5 Historic Crashes

Mumbai: In a stunning reversal of investor sentiment, Indian stock markets experienced a massive crash on Monday, prompting many to compare the sell-off to previous economic meltdowns. The Sensex dropped 3,939.68 points, and the Nifty declined 1,160.8 points, marking the worst opening fall since March 2020.
The freefall, attributed to fears of a global recession and escalating trade tensions, wiped out gains across sectors, with IT and mid-cap stocks bearing the brunt. Market analysts are already calling it “Black Monday 2024.”
As the Indian Stock Market Crash 2024 dominates headlines, here’s a look back at five of the worst market crashes in India’s financial history:

1. Harshad Mehta Scam (1992)
The exposure of stockbroker Harshad Mehta’s fraudulent activities led to a 56% Sensex drop in under a year — the crash revealed major loopholes in banking and regulatory systems.

2. Asian Financial Crisis (1997)
The contagion from collapsing Asian economies impacted Indian markets, pulling the Sensex down by over 28%.

3. Dot-Com Bubble Burst (2000–2001)
Overvaluation of tech stocks led to a 43% correction, shifting investor interest away from tech-heavy portfolios.

4. Global Financial Crisis (2008)
The biggest crash in recent memory, the 2008 meltdown saw the Sensex fall by nearly 60%, echoing global economic turmoil post-Lehman Brothers’ collapse.

5. COVID-19 Pandemic Crash (2020)
The initial wave of the pandemic sparked a 39% crash, but swift stimulus triggered one of the fastest recoveries in market history.

What’s Next After the Indian Stock Market Crash 2024?
While steep market declines often lead to recoveries, this crash is clouded by global economic headwinds. Experts advise investor caution, diversification, and long-term planning, as volatility is likely to persist through 2024.