Stock market crash: Should you worry as investors lost ₹20 lakh crore last week? Radhika Gupta of Edelweiss explains

Stock market crash: After the outbreak of the US-Iran war, the Indian stock market has been reeling under the selling pressure for the last two weeks. However, on Friday last week, key benchmark indices — the Nifty 50 and the BSE Sensex — declined by 2%. The Sensex dropped 1,471 points, or 1.93%, to end at 74,563.92, while the Nifty 50 settled at 23,151.10, falling 488 points, or 2.06%. The BSE 150 Midcap index crashed 2.61%, and the BSE 250 Small-cap index suffered a loss of 2.67%.

Both the Sensex and the Nifty extended losses for the third consecutive week. This week, the Sensex shed 4,355 points, or 5.5%, while the Nifty 50 lost 1,300 points, or 5.3%. Investors lost ₹20 lakh crore this week as the overall market capitalisation of firms listed on the BSE dropped to nearly ₹430 lakh crore from nearly ₹450 lakh crore on Friday, March 6, 2026.

Adding salt to an Indian stock investor's wounds, the key benchmark indices of the Indian stock market have remained almost flat for the last 18 months. This means an investor's portfolio has either remained idle for the last 1.5 years or delivered zero returns during this period.

Should you bother?

Radhika Gupta, MD & CEO at Edelweiss Mutual Fund, believes Indian stock market investors need not worry, as such things have happened before. While an investor may have many questions at this juncture, the financial expert advised investors to maintain their calm and composure by asking three questions and their answers. Those three questions are: With so much geopolitical tension, what lies ahead; my portfolio has been flat for the last 18 months, or I haven't made money in the last 18 months; and what should I do now?

Geopolitical tensions

Advising investors to learn from past geopolitical events, Radhika Gupta said that during geopolitical tensions, markets fall but eventually recover faster. Using two examples, Radhika Gupta highlighted the stock market crash following the 9/11 attacks in 2001 and the Iraq War in 2003. In the 9/11 incident, markets fell by 6% to 7% over the next month, but they bounced back strongly, gaining around 14% over the next six months. Similarly, after the Iraq War in 2003, the stock market crashed by 7% to 8% over a month, but it surged by 15% to 16% the next year.

I haven't made money in the last 18 months

Answering the question above, Radhika Gupta of Edelweiss Mutual Fund said that in the Indian stock market today, many people are complaining about flat portfolio performance over the last 18 months. The finfluencer said that such periods have occurred earlier as well. But after the end of such a lean 18-month period, the next 18 to 36 months have been quite rewarding, with an annual return of 12% to 13% on one's money. So, stay invested and keep on accumulating on every big dip.

What should I do?

Answering this third and last question, the Edelweiss Mutual Fund expert said that investors need not do anything and stick to the disciplined investment cycle. She said that investors may avoid adding more if they don't want to. For SIP investors, her simple advice was to remain invested through the time cycle, irrespective of market movements, as a long-term SIP investor would get at least 12% to 13% at the time of redemption.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.