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5 Stock Market Crashes During Past Pandemics Markets have corrected sharply during previous disease epidemics also, only to rebound in the next 6-8 months

By Shipra Singh

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

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The spreading coronavirus pandemic has shaken stock markets around the world and as a result investor's sentiments.

The BSE Sensex has shed nearly 27 per cent in the last two months, from 41,115 on 27 January to 29,815 on 27 March. During this period, the index also recorded its biggest single day fall of about 13 per cent on 23 March following the government's decision of a 21-day countrywide lockdown.

However, this is not the first instance of a market crash amidst a pandemic or an epidemic outbreak. Markets have corrected sharply during previous disease epidemics only to rebound in the next 6-8 months.

Entrepreneur India tells you how the BSE Sensex has reacted to past epidemics and also traces 1-year and 3-year returns the index has posted post the outbreak.

Source: ET Money

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SARS-CoV (Jan-March 2003)

During the outbreak: -10.07%

1-year return: 77.68%

3-year return: 269.99%

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Bird Flu (Jan-August 2004)

During the outbreak: -12.23%

1-year return: 47.42%

3-year return: 195.04%

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Ebola (Dec 2013 – Feb 2014)

During the outbreak: 1.06%

1-year return: 44.44%

3-year return: 36.09%

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Zika (Nov 2015 – Feb 2016)

During the outbreak: -13.39%

1-year return: 13.36%

3-year return: 55.93%

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Swine Flu (Jan – May 2015)

During the outbreak: -6.91%

1-year return: -4.24%

3-year return: 26.83%

Shipra Singh

Entrepreneur Staff

Freelance Journalist

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