Stock market crash is a drastic fall of prices in the rates of stocks which hold significant position in stock market. Crashes in stock market create a state panic amongst the economic growth of the country. If we look back in history there are several historical market crashes which will create fear in your mind if you are planning to do the investment in stock market. 

Stock market will go well till there is a constant cycle of production which is followed by the constant cycle of income. These two factors majorly effect the growth of stock market, but the twist comes when goodwill of any company gets spoilt due to several reasons and prices of stock start falling down. Stock market crashes when the stock prices of some large cap companies registered on BSE OR NSE fall heavily that too within a span of few days. This fall in prices bring restlessness in the market. And even the companies who are performing better shatter down. Reasons for the crash of stock market cannot be predicted but after the crash, experts spend a lot of time in finding out the reasons that lead to the crash of markets. Like if we go back in history, we can see that the scam of Harshad Mehta in the year 1991- 1992, who was a big bull of the stock market that time was the one who took advantage of a small loophole of banks start purchasing shares against the government bonds which was the reason that the market became bullish that time and when banks started asking back their money he has to sell those shares which was the reason for the crash of stock markets in India that year. There is no single factor which is responsible for the crash of markets in India. Investor’s psychology during the crash period holds an important role, because at times of market crash, in state of panic he gets shaken up and starts selling his share too that will prove to be more disastrous.