{"id":30630,"date":"2024-06-08T08:35:15","date_gmt":"2024-06-08T03:05:15","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=30630"},"modified":"2024-06-08T08:35:15","modified_gmt":"2024-06-08T03:05:15","slug":"sensex-crashes-since-1992","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/sensex-crashes-since-1992\/","title":{"rendered":"Sensex Crashes Since 1992"},"content":{"rendered":"

The sensex had a massive reaction to the 2024 election results. Initially, the market index experienced a crash, dropping by almost 6% as the election results indicated that the National Democratic Alliance (NDA) led by PM Narendra Modi did not achieve a simple majority in the Lok Sabha. This outcome was contrary to the predictions made by exit polls, which caused uncertainty and panic among investors.<\/span><\/p>\n

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However, the Sensex made a strong recovery. Within three days, the Sensex not only recaptured the losses from the election result day but also made new record highs. The benchmark index jumped 1720.8 points to hit a record peak of 76,795.31 in a single-day trade. This marked a significant milestone with the Sensex soaring by over 1,720 points i.e., over 2% to reach lifetime intra-day record highs. Plus the Reserve Bank of India’s decision to revise the GDP growth projection to 7.2% for 2024-25 from 7% earlier, contributed to the positive momentum in the stock market.\u00a0<\/span><\/p>\n

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\"Start<\/a><\/b><\/h4>\n

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What is a Financial Crisis?<\/strong><\/h4>\n

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A financial crisis is a case where the value of your assets decreases up to a point that investors panic and start selling their stocks.<\/a> If a majority of investors start following the trend, prices fall drastically and markets crash. Hence, indices are impacted.<\/span><\/p>\n

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Suppose you invested \u20b910,000 in the stock market last week. A day after you invested, its value became \u20b99,500. And today, its value plummeted to \u20b96,000. So you panic and sell your share in the hopes of not losing any more money. When this is practised by many investors simultaneously, market indices such as NIFTY 50 and Sensex change drastically.\u00a0<\/span><\/p>\n

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There have been significant crashes throughout history. Let us delve into some of the major market crashes in India.<\/span><\/p>\n

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India's stock market benchmarks recorded their steepest drop in 4 years as Lok Sabha election outcomes rattled investors. The BSE Sensex tumbled 5.7%. Take a look at its biggest single-day declines since 2000, and the underlying causes.#ChartOfTheDay<\/a> pic.twitter.com\/WeC0VTAGcE<\/a><\/p>\n

— Kuvera (@Kuvera_In) June 5, 2024<\/a><\/p><\/blockquote>\n