In breaking news in India today live, the Indian stock market witnessed one of its largest declines since June 2024. On Monday, April 7, 2025, the Sensex fell nearly 4,000 points, and the Nifty 50 fell below 21,750, causing massive panic and wiping out the confidence of investors. This sharp decline was largely triggered by fear of a US recession following a trade war across the globe, fueled by reciprocal tariffs by US President Donald Trump. The market capitalization of BSE-listed companies plummeted by nearly Rs 16 lakh crore within minutes. Meanwhile, the India VIX, a significant Volatility Index, surged by over 56%.
While market fluctuations are normal, certain crashes leave lasting marks on the economy and investor sentiment. In this article, we’ll take a look at some of the most severe single-day crashes in India’s stock market history. These crashes continue to shape the financial landscape, offering key insights for investors and market watchers.
1. The Harshad Mehta Scam Crash – 1992
India's first major stock market shock in 1992 was when stockbroker Harshad Mehta exploited loopholes in the banking system to drive up share prices. The Rs 4,000 crore scam was discovered in April 1992, and investor sentiment was shaken to its very foundations. On April 28, 1992, the Sensex fell 570 points (12.7%) on a single day – its worst crash to date. The government responded by tightening the position of the Securities and Exchange Board of India (SEBI), laying stricter regulations to prevent such scams.
2. The Ketan Parekh Scam Crash – 2001
In 2001, India was again shaken by a market manipulation scandal, this time by stockbroker Ketan Parekh, who was accused of manipulating prices of certain stocks artificially. When the scam came to light in March 2001, the Sensex dipped 176 points (4.13%). This fall followed the burst of the dot-com bubble and was further aggravated by the Gujarat earthquake and poor global cues, and therefore there was panic selling across the board.
3. The Election Results Crash – 2004
On 17 May 2004, came a shock electoral result with a massive stock market crash. Congress-led United Progressive Alliance (UPA) defeated the NDA, which had been supporting more extreme economic reforms. The investors were left stunned by the outcome, and the Sensex went down by 11.1% on one day. Trading was halted twice because panic selling ruled the roost. But when the new government had reassured investors that reform would not desist, the market steadied.
4. Global Financial Crisis Crash – 2008
The 2008 world financial crisis that was caused by the meltdown of Lehman Brothers in the US rattled global markets, including that of India. Foreign investors began exiting Indian markets, and the Sensex dipped by 1,408 points (7.4%) on January 21, 2008. During the next few months, the market dropped further, losing nearly 60% of its peak value. The bear market ranks as one of the worst financial crises in India.
5. The COVID-19 Pandemic Crash – 2020
The COVID-19 pandemic outbreak in early 2020 resulted in a worldwide health crisis, with the additional impact of economic panic. India's declaration of a lockdown within the country resulted in a steep decline in the market due to apprehensions over a total halt in economic activity. On March 23, 2020, Sensex fell 3,935 points (13.2%), one of the largest crashes ever in Indian history. Fortunately, following action by the government and Reserve Bank of India (RBI), the market soon recovered.
Conclusion
In India today news live breaking, stock market crashes are a reality that investors need to be ready for. Whether it is due to political happenings and corporate scams or global economic crises and pandemics, these market crashes have defined the economic history of India. Whether fueled by domestic dynamics like the Harshad Mehta scam or world events like the COVID-19 pandemic, such crashes reflect the volatility that investors have to contend with.
As we saw on April 7, 2025, with Sensex and Nifty 50 plummeting, declines in the stock market can be abrupt and harsh. However, with appropriate knowledge and measures, investors can weather the storm and remain strong in spite of such shocks. Stay updated with breaking news in India today live to keep track of market trends and potential opportunities.
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