Scam 1992 vs. Sensex 2025: Lessons From Bulls, Bears, And Billionaires

Social media (and life in general) is full of ‘what if’ scenarios. What if Rohit Sharma had not played that short against Maxwell in the WC Finals? What if you chose Commerce instead of Science in your high school? What if you had invested INR 50000 in MRF stock back in 2008?

Life is all about choosing between many alternatives. You cannot hit the bullseye every time you attempt a shot. However, you can avoid making similar mistakes by learning from history. When you persist and keep trying (and remain invested), you get the pot of gold at the end of the rainbow more often than naught. There are so many lessons from share market bull and bear, and obvious comparisons between 2025 and 1992. 

From Harshad To Hype

What Scam 1992 Taught A Generation

The Harshad Mehta scam remains one of the most infamous stock market frauds in India’s history, and its impact still echoes in financial circles today. If you are Gen Z, you probably know it more from memes or the hit web series “Scam 1992” than from firsthand experience. But for millennials and anyone interested in Indian financial markets, the 1992 scam is unforgettable, it triggered massive panic, wiped out life savings, and shattered trust in stock market investments.

Harshad Mehta, often called the “Big Bull,” manipulated loopholes in the banking system to artificially inflate stock prices, fueling a bull market frenzy that eventually crashed spectacularly. The fallout led to stricter regulations, the birth of SEBI’s stronger oversight, and a new wave of skepticism among retail investors. 

The story of Harshad Mehta is now a cautionary tale about unchecked ambition, market bubbles, and the importance of financial literacy. Whether you are a seasoned trader or just starting to explore investing, the scam is a reminder: the stock market rewards knowledge, not just hype or herd mentality

Why Sensex 2025 Feels Like A Sequel (With New Plot Twists)

Cut to the present time, it seems like the retail investor psychology is back on the forefront. In FY 2025, NSE reported adding 84 lakh new demat accounts, 20.5% more than the previous year. Most of the accounts belonged to people under the age of 35 who preferred new-age digital platforms to start their investment journeys. 

Thanks to social media and other information sources, people feel that stock market investments are a ‘safe’ way of making them rich. The Sensex is scaling new highs, fuelled not by loopholes but by liquidity, mobile apps, and viral content. IPOs are oversubscribed in minutes, meme stocks trend on X (formerly Twitter), and FOMO (Fear of Missing Out) dictates investment choices.

The frenzy is quite similar to what we witnessed back in 1992, when there was a massive FOMO and stock market investments seemed the easiest way of making money. Instead of following Harshad Mehta, investors are behind digital bull runs powered by influencers and algorithms.

The Rise Of The Bulls: Then vs Now

1992’s Bull Run: Hype Meets Loopholes

Harshad Mehta understood the loopholes in the banking system and used such gaps to pump massive amounts of money into the stock market, thereby causing an artificial bull run. 

Retail investors simply trusted the shares backed by Harshad Mehta, and the Sensex soared on illusion and not value. When the bubble burst, retail investors’ confidence was worst affected. 

2025’s Bull Run: Driven by Data, Retail, And Global Liquidity

In the presence scenario, it is hard to point fingers at one individual, but the entire frenzy is created by new-age apps, SIPs and access to information. Everything looks more legit as most economic indicators point towards a better tomorrow. 

India’s economic optimism and global inflows have pushed indices to record highs. But FOMO still rules. FOMO investing risks include losing all the money, as people often forget about fundamental and technical analysis. 

Currently, IPOs are oversubscribed in hours, and memes move markets. The engine might have changed, but the speed is quite the same. The bulls are smarter, but the level of euphoria remains quite identical. 

Crashes, Corrections, And Comebacks

The 1992 Crash And Its Ripple Effects

In 1992, the stock market crash took months and years to recover. However, various regulatory steps were taken to protect investors' interests. SEBI was born, ushering in transparency, tighter regulations, and better oversight. 

The crash was brutal but became a turning point for India’s capital markets. Investors were made more aware, and there was a massive improvement in transparency. SEBI reforms post 1992 has made the market digital and highly reliable, something we see today. 

What Today’s Investors Can Learn From It

Overall, investor confidence in the stock markets has increased significantly, as the markets always manage to make a comeback. Any market correction is not considered a collapse but a normal event. Modern investors benefit from real-time data, diversified options, and stronger safeguards. Stock market volatility is not the enemy, but can be deemed a test of patience, strategy, and emotions. 

Beyond Stocks: What Smart Investors Are Eyeing In 2025

Bonds, InvITs, And Yield-Focused Investing

Irrespective of your risk-taking abilities, it is important to have a diversified portfolio. Your investments are aimed at different life goals, and hence, choosing different asset classes is critical for long-term growth. Bonds, InvITs, and other fixed-income products are gaining traction for stable returns and lower risk. These are not just safe investments in 2025 but provide you enough returns to fund your retirement and other goals. 

There are memes of dads looking at their sons’ portfolios, all in red and grinning about their fixed 7.5% returns. Yield-focused strategies are coming back, especially for people who understand the importance of diversification and stability and seek predictable returns rather than a rollercoaster. 

Grip’s Marketplace: Where Cautious Optimism Meets Action

Grip’s Marketplace is an innovative peer-to-peer online platform on the Grip App that democratizes access to high-quality bonds in India. It allows investors to buy and sell bonds with each other, creating a dynamic and liquid secondary market.

This helps investors by offering enhanced liquidity, transparency, and exclusive access to vetted, high-yield bonds, making it easier to diversify portfolios and work toward long-term financial goals with greater control.

Closing Note: The Market Always Has A Twist Ending

If there is anything to learn from Scam 1992, one should exercise caution, restraint, and proper market analysis before investing. In the current scenario, there is a lot more information, but the investor intent has not changed much. The markets will always have volatility and drama. There will be hundreds of opportunities lost and a few captured. 

Diversification and choosing different asset classes for investment is not a strategy, but a seatbelt in a highly volatile market where you seek to attain long-term investment goals. Never let FOMO replace financial wisdom; do not lose sight of your goals. Harshad rode loopholes. Today, you can ride data. Back then, people followed tips. Now, you can follow trends with tools.

Be bullish, but do not be blind. Remember how critical it is to diversify and expect consistent market returns. 

Log in to Grip Invest to explore data-backed, fixed-income opportunities designed for smarter long-term investing.

FAQs On Lessons From Share Market

1. What does a bull run mean in the stock market?

A bull run is a sustained period of rising stock prices, driven by investor optimism and market momentum.

2. How can retail investors avoid falling into a stock market trap?

By doing their research, avoiding herd mentality, and investing based on fundamentals, not hype.

3. What should investors learn from Scam 1992 in today’s context?

That unchecked greed and blind trust can be costly, even in a seemingly booming market.

4. What role do bonds and fixed income play in a volatile market?

They provide stability, predictable returns, and a hedge against equity market fluctuations.

Want to stay at the top of your finances? 

Join the community of 4 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks, and shenanigans in the world of investing.

Happy Investing!

Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

Registered Address - 106, II F, New Asiatic Building, H Block, Connaught Place, New Delhi 110001