Foundation

Case Study: How COVID 19 Triggered the Fastest Bear Market in History

In February 2020 global stock markets were at or near record highs. About a month later the S&P 500 had entered a bear market faster than ever before, Nifty had lost close to 40% of its value, trading on NSE and BSE had been halted by a lower circuit, and India was heading into one of the strictest lockdowns in the world. This case study walks through that crash from start to finish, in plain language. It starts with what made the 2020 fall unique and the state of India's economy and markets going in. It then follows the crash week by week: the first virus scare in late February, the oil price war, the lower circuit of 13 March, the lockdown and the 23 March bottom, and the foreign investor selling that pushed the rupee down. Next it explains the policy response: the US Federal Reserve's emergency actions, the RBI's rate cuts, liquidity measures and loan moratorium, and the Franklin Templeton debt fund shutdown that shook Indian mutual fund investors. It then covers the equally fast recovery, why markets rebounded long before the economy did, which sectors won and lost, and the surge of first-time investors opening demat accounts. It closes with practical lessons: what panic selling actually cost, and how to build a crash plan before the next one arrives.

COVID-19 CrashBear MarketsMarket HistoryCentral Bank ResponseInvestor Behaviour
MODULES
5
DURATION
~2.5 hrs
TRACK
Macro & Markets

What You'll Master

What a bear market is and why the 2020 fall was the fastest on record
Where India's economy and markets stood just before the crash, and why that mattered
How the crash unfolded week by week, from the first virus scare to the 23 March bottom
What lower circuits and market-wide trading halts are, and what happened on 13 March 2020
Why foreign investors sold Indian assets so heavily and what it did to the rupee
How the US Federal Reserve, the RBI and the Government of India responded, and why it worked
What the Franklin Templeton debt fund shutdown teaches about liquidity risk in mutual funds
Why markets recovered before the economy, which sectors won and lost, and how to prepare your own portfolio for the next crash
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates

Curriculum Breakdown