Biggest Share Market Falls, Their Recovery Journey
The share market is known for its ups and downs, often reacting sharply to unexpected events. Over the years, India has faced several major market crashes due to political surprises, global financial crises, scams, and pandemics. Despite these falls, the market has shown remarkable resilience, bouncing back stronger each time. In this story, we’ll look at the biggest market declines in India’s history and how long it took for the market to recover each time.
The 2004 Market Crash: Unexpected Election Result
On 17th May 2004, the Indian stock market saw its biggest one-day fall of around 16 per cent, dropping by 500 points. This happened after the unexpected defeat of the NDA government led by Atal Bihari Vajpayee in the Lok Sabha elections. Investors panicked, leading to heavy selling. However, the market recovered in just 2.5 months, regaining the 5000-point level by July 2004.
The 2020 Crash: COVID-19 Panic
On 23rd March 2020, the market crashed by 13.5 per cent due to fears of the COVID-19 pandemic. The government announced a nationwide lockdown, causing panic among investors. The market fell to 25,900 points but recovered in 8 months, reaching around 41,000 points by November 2020.
The 1992 Harshad Mehta Scam
On 28th April 1992, the market dropped by 12.77 per cent after the Harshad Mehta scam shook investor confidence. The Sensex fell from 4400 to 3900 points. Recovery took 16 months, and by August 1994, the market crossed the old levels.
The 2008 Global Financial Crisis
On 24th October 2008, the market fell by around 11 per cent due to the global financial crisis following the collapse of Lehman Brothers. The Sensex dropped from 18,000 to 8,566 points. Although recovery started soon after, it took 22 months to regain the old levels, reaching them by July 2010.
The 2008 Financial Crisis in January
On 21st January 2008, the market fell by 7 per cent as signs of a global financial crisis emerged. The Sensex dropped from 20,000 to 15,300 points. Decline continued, and by October 2008, it reached 7,600 points. Recovery took around 2.5 years, with the market regaining its previous level by September 2028.
The 2025 Market Fall: A Recent Shock
On 7th April 2025, the market witnessed its 2nd biggest fall, with the Sensex dropping by 2.26 per cent (2226 points) to 73,137. The Nifty fell by 3.24 per cent (742 points). This came after another sharp fall on 4th June 2024 of 5.75 per cent.
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