February 14, 2020

6 Worst Stock Market Crashes

Yuan Devaluation and Brexit (2015)

06

On August 24, 2015, the Sensex fell 6%, wiping out INR 7 lakh crore, due to China lowering its currency, Brexit worries, falling oil prices, and Greece’s debt issues, showing the need for investment diversification.

Demonetisation (2016)

05

From 2015 to 2016, the Sensex fell 26% due to bad loans and global weaknesses. In November 2016, demonetisation caused panic, leading to a 6% drop in four days, hitting short-term investors hard.

Harshad Mehta Scam (1992)

04

Harshad Mehta, the Big Bull of the Indian stock market, manipulated stocks using fake bank loans, causing a ₹4,000 crore scam and a major market crash in 1992. Sensex fell almost 13% on a single day.

Dotcom Bubble Crash (2000)

03

The Dotcom Bubble Crash in 2000 happened when internet company stocks were priced too high and then collapsed, causing the Nasdaq to lose 80% of its value and leading to a recession.

COVID-19 Pandemic (2020)

02

The COVID-19 pandemic caused a major stock market crash in India, with the Sensex losing 13,985 points in a week and wiping out INR 13.95 lakh crore on March 23, 2020, due to panic selling and the Yes Bank crisis.

US Financial Crisis (2008)

01

The US Financial Crisis (2008) happened when banks gave out risky home loans that people couldn’t repay. This caused banks to fail, triggering a global recession and forcing the government to step in with bailouts. Sensex dropped from its peak of 20,645 to 9,716, a shocking 50% fall in a year 2008.