Five Major Indian Stock Market Crashes in the Past Decade

Indian Stock Market Crashes: A Decade of Volatility

Key Figures:

• 68%: Returns given by Nifty 50 in the last ten years
• 195%: Multibagger returns given by Sensex in the last ten years
• 1,689 points (6.12%): Decline in Sensex on November 9, 2016
• 541 points (6.33%): Decline in Nifty 50 on November 9, 2016
• 3,935 points (13.15%): Decline in Sensex on March 23, 2020
• 1,135 points (12.98%): Decline in Nifty 50 on March 23, 2020
• $100 billion: Loss in market value of Adani Group's listed companies in January-February 2023
• ₹31 lakh crore: Loss in investor wealth on election result day in 2024
• 2,500 points (3%): Decline in Sensex on March 9, 2026
• 750 points (3%): Decline in Nifty 50 on March 9, 2026

Market Crashes in the Last Ten Years

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

1. Demonetization (2016): The Indian stock market crashed on November 9, 2016, with the Sensex plunging 1,689 points (6.12%) to 26,902 and the Nifty 50 dropping 541 points (6.33%) to 8,002. The sharp decline was primarily driven by the government's surprise demonetization announcement on November 8, coupled with uncertainty from the US presidential election results.

2. COVID-19 Pandemic (2020): The COVID-19 pandemic remains one of the most severe market crashes in recent history due to its unprecedented speed and global scale. On March 23, 2020, the Indian stock market witnessed a historic crash, with the Sensex plunging 3,935 points (13.15%), while the Nifty 50 tumbled 1,135 points (12.98%), in a single session. Overall, from its peak in January 2020 to the bottom in March, the market lost nearly 38% of its value.

3. Hindenburg-Adani Crisis (January-February 2023): A report by Hindenburg Research targeted the Adani Group, leading to a notable correction in broader indices. The conglomerate's listed companies collectively lost more than $100 billion in market value within weeks, sparking concerns over potential contagion.

4. 2024 General Election Result Day: Despite hitting record highs a day earlier on strong exit poll optimism, the market witnessed its worst "non-pandemic" crash when the actual election results signaled a much tighter-than-expected contest. Benchmark indices, Nifty 50 and BSE Sensex, tumbled 5.93% and 5.74% in a single session.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

5. US-Iran War (2026): The most recent major market disruption was triggered by escalating geopolitical tensions between the US and Iran, leading to a sharp surge in crude oil prices. On March 9, 2026, the Indian stock market witnessed a steep decline, Sensex plunging 2,500 points (3%) to hit an intraday low of 76,424, while the Nifty 50 dropped more than 750 points (3%) to fall to 23,697.