October Market Crashes: What 1929, 1987 and 2008 Tell Stock Investors

The Indian stock market entered October after recording its eighth straight weekly loss, marking the longest such losing streak for the Nifty 50 and Sensex in 25 years. The sharp decline on Thursday came as investors entered a month that has gained a notorious reputation globally due to major market crashes, including Black Monday in 1987 and the Wall Street crash of 1929.

As October begins, historical market crashes raise the question: Is October really a crash month for equities? While some of the most infamous stock market crashes occurred in October, historical data for Indian equities shows that the month has delivered a mixed performance rather than consistently negative returns.

The Black Monday stock market crash occurred on October 19, 1987. The Dow Jones Industrial Average fell nearly 22 per cent in a single day, marking the largest single-day percentage decline in U.S. stock market history. According to media reports, the October crash wiped out nearly USD 500 billion in U.S. market capitalisation.

The Wall Street crash of 1929 is another major event associated with October. The Dow Jones Industrial Average fell nearly 13 per cent on October 28, a day often referred to as Black Monday. The sell-off continued the following day, with the Dow declining nearly 12 per cent on October 29, which became known as Black Tuesday.

October 2008 also witnessed a sharp decline in U.S. equities amid the Global Financial Crisis. The crisis had been triggered by an economic downturn linked to the collapse of the U.S. housing market and defaults on subprime mortgages. October represented one of the most intense phases of the financial crisis, as markets remained under severe pressure.

However, the historical record of Indian equities does not suggest that October is consistently a crash month. Data for the past 10 years shows that the Nifty 50 and Sensex have recorded both gains and declines during October.

In October 2016, the Nifty 50 gained 0.20 per cent, while the Sensex rose 0.23 per cent. October 2017 was stronger, with the Nifty 50 rising 5.59 per cent and the Sensex gaining 6.17 per cent.

The October 2018 correction saw the Nifty 50 decline 5.00 per cent and the Sensex fall 4.93 per cent. This was followed by gains in October 2019, when the Nifty 50 rose 3.50 per cent and the Sensex gained 3.78 per cent.

In October 2020, the Nifty 50 gained 3.50 per cent, while the Sensex advanced 4.06 per cent. October 2021 was relatively muted, with the Nifty 50 rising 0.30 per cent and the Sensex gaining 0.31 per cent.

The benchmark indices again posted strong gains in October 2022, with the Nifty 50 rising 5.37 per cent and the Sensex gaining 5.78 per cent. In October 2023, however, the Nifty 50 declined 2.84 per cent and the Sensex fell 2.97 per cent.

October 2024 was another weak month, with the Nifty 50 declining 6.22 per cent and the Sensex falling 5.83 per cent. In contrast, October 2025 ended positively, with the Nifty 50 gaining 4.51 per cent and the Sensex rising 4.57 per cent.

The 10-year data shows that October has witnessed periods of weakness, including the declines recorded in 2018, 2023 and 2024, but it has also produced strong gains in years such as 2017, 2020, 2022 and 2025.

Therefore, while October is associated with several of the world's most infamous market crashes, the historical performance of the Nifty 50 and Sensex over the past decade points to varied outcomes rather than a consistently negative trend. Investors may therefore view October's historical reputation in the context of broader market conditions rather than treating the month itself as a signal of an impending crash.

Disclaimer: The article is for informational purposes only and not investment advice.