Posted on October 28, 2024 by Mumukshu Desai 
Since late September, we’ve seen the Indian stock market go through a correction, with NIFTY falling around 9%. For many, this drop might seem worrying. But experienced investors know that ups and downs are normal in the stock market.
Every year, the market drops by 10–15%, and every three-four years, it usually falls by 20–25%. Every eight-ten years, a bigger drop of 30–40%+ can happen. These corrections are actually healthy. They help adjust stock prices and give serious investors a chance to buy at better prices.
Looking back over the past 16 years, we see a clear pattern: after each big fall, the market has bounced back strongly. For example, in 2020, despite a 38% drop, the market rose by 86% afterwards. Even smaller drops, like in 2016 or 2019, were followed by solid gains. This pattern reminds us that while declines are temporary, recoveries can bring excellent long-term growth for those who wait patiently.
Data compiled by Ms. Niyati Patel at Artham FinoMetry Pvt Ltd. Source: NSE Website, NIFTY 50 Datapoints.
“Investors should see these cycles as part of the journey and not something to fear. Market dips are great chances to build a strong portfolio. History shows that investors who stay calm and keep investing during these times often see higher returns over time.
The rewards come to those who stay calm and disciplined.