Sensex, Nifty fall by over 5%
At the opening of trading, the BSE Sensex plummeted from its previous close of 75,364.69 to 71,449. Similarly, the NSE Nifty opened at 21,758, down from its last close of 22,904. The decline continued, with the Nifty-50 briefly falling nearly 1,000 points to 21,743, while the Sensex traded around 71,425.Reliance, Tata shares plummet
During early trading, the BSE’s large-cap index was completely in the red. All 30 major companies’ shares experienced significant declines. Tata Steel suffered the biggest blow, falling 10.43% to ₹125.80.Infosys, Mahindra shares fall
Tata Motors fell by 8.29%, Infosys by 7.01%, Tech Mahindra by 6.85%, L&T by 6.19%, HCL Tech by 5.95%, Adani Ports by 5.54%, TCS by 4.99%, Reliance by 4.55%, and NTPC by 4.04%. Furthermore, Maruti Share , Kotak Bank Share, Axis Bank Share, IndusInd Bank Share, Titan Share, SBI Share, Bajaj Finance Share, HDFC Bank Share, and ICICI Bank Share saw a 2-3% decline.₹19 lakh crore loss
The Indian stock market witnessed intense volatility at the opening, resulting in a loss of approximately ₹19 lakh crore for investors. This figure is based on the reduction in the market capitalization of BSE-listed companies.Signs of a global recession
The decline reflects fears of a global recession, rising inflation, tight central bank policies, and geopolitical tensions. Experts believe that if this downturn continues, it could lead to a severe crisis not only for the stock market but also for the entire economy. From small investors to large industrial groups, everyone is assessing their losses. Ordinary people are also feeling the impact of this economic tsunami on the streets, as their savings and future aspirations are tied to these markets.Significant Market Crashes
The share market has witnessed several significant crashes, often triggered by economic crises, political instability, or global events. Below are some prominent examples of major declines in Indian and global stock markets. 1865 – First Recorded Crash
Even before the Bombay Stock Exchange (BSE) was formally established, speculation related to the American Civil War led to inflated stock prices, particularly in cotton-related companies. When the war ended in April 1865, cotton demand plummeted, causing a major market crash. Shares like Back Bay Reclamation fell 96% from their peak, resulting in trader losses and a 21% population decline in Bombay due to business closures.
Even before the Bombay Stock Exchange (BSE) was formally established, speculation related to the American Civil War led to inflated stock prices, particularly in cotton-related companies. When the war ended in April 1865, cotton demand plummeted, causing a major market crash. Shares like Back Bay Reclamation fell 96% from their peak, resulting in trader losses and a 21% population decline in Bombay due to business closures.
1992 – Harshad Mehta Scam
This was a historic downturn in the Indian stock market. The BSE Sensex experienced a sharp fall following the exposure of Harshad Mehta’s manipulation of the stock and banking system. In April 1992, the Sensex fell from 4,467 to around 2,500 within months, representing a decline of approximately 40-50%.
This was a historic downturn in the Indian stock market. The BSE Sensex experienced a sharp fall following the exposure of Harshad Mehta’s manipulation of the stock and banking system. In April 1992, the Sensex fell from 4,467 to around 2,500 within months, representing a decline of approximately 40-50%.
2008 – Global Financial Crisis
The global crisis triggered by the collapse of Lehman Brothers in the US impacted India. The Sensex fell from a peak of 21,000 in January 2008 to 8,701 by October 2008, a decline of about 60%. On 21 January 2008 alone, the Sensex fell by more than 2,000 points.
The global crisis triggered by the collapse of Lehman Brothers in the US impacted India. The Sensex fell from a peak of 21,000 in January 2008 to 8,701 by October 2008, a decline of about 60%. On 21 January 2008 alone, the Sensex fell by more than 2,000 points.
2015 – China Slowdown Ripple Effect
Following the devaluation of the Yuan, fears of a Chinese economic slowdown triggered global sell-offs. In India, weak monsoons and poor corporate earnings contributed to the Sensex falling 1,624 points (5.94%) to close at 25,741. The decline continued into 2016, reaching 26% by February.
Following the devaluation of the Yuan, fears of a Chinese economic slowdown triggered global sell-offs. In India, weak monsoons and poor corporate earnings contributed to the Sensex falling 1,624 points (5.94%) to close at 25,741. The decline continued into 2016, reaching 26% by February.
2016 – Demonetisation
The Indian government’s sudden withdrawal of ₹500 and ₹1,000 notes sparked panic selling. Reflecting fears of a cash crunch and economic disruption, the Sensex fell 1,689 points (6.12%) to close at 26,902.
The Indian government’s sudden withdrawal of ₹500 and ₹1,000 notes sparked panic selling. Reflecting fears of a cash crunch and economic disruption, the Sensex fell 1,689 points (6.12%) to close at 26,902.
2020 – COVID-19 Pandemic
The announcement of global lockdowns due to COVID-19 in March 2020 caused market chaos. The Sensex fell from 38,000 on 13 March to 25,981 by 23 March, a decline of approximately 33%. A single-day drop of 3,934 points was witnessed on 23 March.
The announcement of global lockdowns due to COVID-19 in March 2020 caused market chaos. The Sensex fell from 38,000 on 13 March to 25,981 by 23 March, a decline of approximately 33%. A single-day drop of 3,934 points was witnessed on 23 March.
4 June 2024 – Lok Sabha Election Results
On the day of the Lok Sabha election results, when exit poll predictions proved inaccurate and the NDA received fewer seats than expected, the Sensex fell 4,569 points (approximately 6%). This was the biggest single-day fall on election result day in four years.
On the day of the Lok Sabha election results, when exit poll predictions proved inaccurate and the NDA received fewer seats than expected, the Sensex fell 4,569 points (approximately 6%). This was the biggest single-day fall on election result day in four years.
October-November 2024 – Foreign Investor Sell-off
In October 2024, Foreign Institutional Investors (FIIs) sold over ₹94,000 crore, causing the Sensex to fall from around 85,000 to around 78,000 by November. This represented a decline of approximately 8-10%, influenced by investor shifts towards China and geopolitical tensions.
In October 2024, Foreign Institutional Investors (FIIs) sold over ₹94,000 crore, causing the Sensex to fall from around 85,000 to around 78,000 by November. This represented a decline of approximately 8-10%, influenced by investor shifts towards China and geopolitical tensions.
