Outlook Business Desk
Harshad Mehta, the man who shocked the market in the early 1990s, exploited market loopholes and created a sense of panic among investors. His case exposed the fragility of the system.
The Ketan Parekh crash, combined with the dot-com bubble, had a significant impact, causing the Sensex to plummet from 4,200 to 2,594 in 2001. This historic crash not only shattered investors' confidence but also revealed critical vulnerabilities in the market.
Slow but steady recovery began in 2003, with the Sensex rebounding to around 4,200 by mid-2004 from its crash low. This recovery was driven by strong GDP growth, a booming IT sector, and rising global interest in India's economy.
In 2008, the Global Financial Crisis sent shockwaves across the world. The Sensex fell dramatically from 21,000 to about 8,000 by March 2009, as major financial institutions and economic activities collapsed in short order.
After a brief period, the Indian market staged a remarkable recovery, quickly rebounding from the damage. By November 2010, with the aid of global stimulus measures and interest rate cuts, the Sensex regained the 21,000 mark from its low of 8,000, reflecting an impressive growth of 162%.
In March 2020, Covid-19 shook the world—and the Indian stock market. The Sensex crashed from 41,000 to 25,981 amid fears, lockdowns, and global economic uncertainty. The impact of Covid-19 was profound and significant, and its recovery was estimated to take a considerable amount of time.