New Delhi:
After the tariff of Trump, markets around the world are in bad shape. The stock markets are being exposed. The Indian stock market was exposed to today i.e. April 7. At 9:35 in the morning, the Sensex fell 2,381 points or 3.12 percent to 73,010 and the Nifty declined 816 points or 3.56 percent to 22,088. The reason for this decline is believed to be the recipes imposed by the US, which has increased the risk of trade war in the whole world. The Nifty Midcap 100 index was dropped by 2,045 points or 4.07 percent to 48,562 and the Nifty Smallcap 100 index was 820 points or 5.24 percent to 14,855. The kind of situations that are maintained by Trump’s tariff, reminded people of that day i.e. black mandas. Which is considered the worst day in the history of the stock market. The impact of Trump’s tariff hit is seen in the stock market, once again people remembered the blade Mande.
After all, what is this black mande, why the panic of this day is till today, know- know-What is Black Mande
The day of 19 October 1987 in the world of stock market is called Black Mande. Actually it was the worst day of the stock market. On these days, Dow Jones fell below about 22%. The decline in the US stock market Dow Jones on 19 October 1987 is the biggest single-day crash ever. The effect of this decline was not only in the US, but this crisis was also seen in the markets of Europe, Asia and Australia. This was Monday and due to this heavy crash, even today, Black is known as Mande. It is also called the first ‘Global Stock Market Crash’.
S&P-500 index declined by 20.4%
S&P 500 fell 20.4% to close at 230.30 that day. Dow Jones fell 22.6%, which was a decline of 508 points – this is the biggest decline of the history of the stock market in a day. According to an estimate, at the time globally, this crash damaged US $ 1.71 trillion. Starting from Hong Kong, this crisis spread rapidly to Asia, Europe and America.
This Black Mande not only shaken investors, governments and market regulators, but also made such a fear that even today people would not forget the memories of this day. People got so much money that many companies reached the verge of ruin. Many reasons were considered as computer-based trading algorithms, fear of investors and lack of market liquidity behind this decline. Black Mande has such a fear in the stock market that rules such as ‘circuit breakers’ were implemented for safety, so that such a decline could be stopped in future.
It in japan “Blue Tusade” It was also said, because due to the difference of time sector, the stock market was affected on the day of 20 October. The market in Japan fell 14.9% that day. But the impact there remained relatively low and the market recovered in the next five months. At that time, Japan’s economy was in a very strong position. So Japan emerged very soon.
Impact on global markets
In the 1980s, global economies were more connected to each other than ever, the impact of this heavy decline in America immediately spread worldwide. However, due to the difference of time zone, this effect was seen in some markets on the same day, in some the next day, which was also called “Blue Tusade”. Investors in Europe considered it the beginning of the “Global Market Panic”, and many small investors sold their shares. Black Mande caused a loss of US $ 1.71 trillion globally.
- The biggest stock market declines: On the day of Black Mande, Dow Jones fell 508 points to close at 1,738.74, which was about 22. decline. Which is the biggest decline in one day so far.
- First Global Market Crash: S&P 500 also fell 20.47% to 230.30. This was the first time that the decline in a country affected the markets of the whole world. The Hang Seng Index in Hong Kong declined by 45.8%, New Zealand 60%, and UK’s FTSE 100 declined by 26.5%. It was called “the first global market crash”.
- Global disadvantage: The crash globally damaged US $ 1.71 trillion. It was hit by every investor from big to small.
- Because of which black market came in the stock market: There were many reasons for this decline. Such as the market overwell, computerized trading, fear of investors, and liquidity crisis. The stagnation of margin calls and trading systems was also a major reason.
- How much has the impact of Black Mande on India: India’s Sensex dropped 2.5% at that time, which was much less than the global markets. India was less connected to the global financial system at that time, but it inspired India to strengthen its financial system and adopt a policy of liberalization in 1991.
From big investors to small retail investors, it was killed in such a way that the fear could not be overcome yet. Many people lost their deposits. Markets like Hong Kong and New Zealand had to temporarily shut down and in many countries the trading volume was so high that the system was stalled. The situation became that this crash created a possibility of crisis like Great Depression (1929). Investors and governments feared that it could cause global recession. However, Federal Reserve and other central banks stopped it from converting into recession,
Black Mend was also trending on social media
Black Mande was trending in the social media world on the previous day. famousAmerican TV personality and market analyst Jim Kreer has warned that the worst one -day decline may be seen since the “Black Mande” of 1987 on Monday, April 7. His warning came after US President Donald Trump trade tariff, which has shook countries around the world this week. Speaking during his show Mad Money on CNBC, Kremer warned that the markets can see the devastation like 1987.