Stock market crash: The Indian stock market has witnessed a roller-coaster ride, with both indices – and Nifty – witnessing steep declines that have surprised investors. Driven by factors such as global uncertainties, pandemic, these market crashes have significantly influenced the country’s financial landscape.
Despite crashes and volatility, Nifty 50 has given around 68% returns and Sensex has given multibagger returns of over 195% in the last ten years.
Let’s deep dive into the history of the five biggest Indian stock market crashes in the last ten years.
Top 5 Indian stock market crashes in the last 10 years
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 dropping 6.33% or 541 points to 8,002.
This 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
COVID-19 pandemic remains one of the most severe market crash 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, or 13.15%, while the Nifty 50 tumbled 1,135 points, or 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. The sharp sell-off was largely driven by panic among investors following the nationwide lockdown and growing uncertainty about the global economic outlook amid the COVID-19 pandemic.
3] Hindenburg-Adani Crisis (January – February 2023)
While it did not trigger a market-wide crash comparable to the COVID-19, the episode created significant systemic ripples and led to a notable correction in broader indices.
After a report by Hindenburg Research targeted the Adani Group, the conglomerate’s listed companies collectively lost more than $100 billion in market value within weeks.
The sharp sell-off sparked concerns over potential contagion, particularly regarding banks’ exposure to the group, which in turn weighed on the Nifty 50. As a result, the broader market entered a phase of heightened volatility and largely sideways movement.
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 signalled a much tighter-than-expected contest.
Benchmark indices, Nifty 50 and BSE Sensex, tumbling 5.93% and 5.74% in a single session. The sharp sell-off triggered panic across sectors, wiping out nearly ₹31 lakh crore of investor wealth within hours.
5] US-Iran war 2026
The most recent major market disruption was triggered by escalating geopolitical tensions between the US and Iran, which led to a sharp surge in crude oil prices.
On March 9, 2026, the witnessed a steep decline, Sensex plunged nearly 2,500 points, or over 3%, to hit an intraday low of 76,424, while the Nifty 50 dropped more than 750 points, or over 3%, to fall to 23,697.
The sharp fall came after crude oil prices crossed $110 per barrel, sparking heavy sell-offs in oil marketing companies and paint manufacturers, which are highly sensitive to raw material costs.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.