Crash, Crash, Crash: Three Times Stock Markets Fell.. And Rose

The recent April 7, 2025, market fall, when the BSE Sensex fell by about 3,939 points (5.22%) and the NSE Nifty 50 fell by around 1,160 points (5.06%), is one of the largest single-day falls in recent history.

The Indian stock market has seen several major crashes in the past decades, with each being affected by unique reasons. April 7 is also being considered as Black Monday 2.0 for witnessing the bloodbath of the stock market. Let us look at some major days affecting the market scene over the years.

1. June 4, 2024: Uncertainty Over Election Outcome

The exit poll predictions for the 2024 general elections were defied as the vote showed a narrower win for Bharatiya Janata Party ( BJP ) Prime Minister Narendra Modi . BJP won 240 seats, falling short of a predicted landslide. 

The surprise result unnerved investors, and Sensex fell 4,390 points (5.74%), while Nifty 50 declined by 1,379 points (5.93%). The fears were about delays in economic reforms because coalition rule would be required.

These events highlight the vulnerability of financial markets to international events and domestic political incidents, and the need for caution and flexibility on the part of investors.

2. March 23, 2020: COVID-19 Pandemic Fears

In the face of rising fears of the COVID-19 pandemic, the government in India ordered lockdowns across several districts to stem the spread of the virus. This triggered a tremendous sell-off in the markets, with the Nifty 50 losing 12.98%, which was one of its worst single-day falls. 

The lack of clarity around the duration of the pandemic and its economic impact created fear among investors.

3. January 21, 2008: Global Financial Crisis Impact

On this day, the BSE Sensex fell by about 1,408 points (7.4%), a response to the unfolding global financial crisis. The crisis was based on the U.S. subprime mortgage fiasco, which resulted in a global credit crunch. 

Foreign Institutional Investors (FIIs) started selling Indian equities to meet liquidity requirements, causing huge capital outflows and a significant weakening of the Indian rupee.

These episodes highlight the vulnerability of financial markets to international events and domestic political trends and call attention to the need for alertness and responsiveness on the part of investors.