Ongoing recovery in markets is poised to extend longer: Elara Securities

In past 16 instances, Nifty bounced after a correction of over 10%

The ongoing recovery in the markets is poised to extend longer, if past data is an indication. Since 2006, whenever the benchmark Nifty has corrected 10 per cent or more, it has managed to recoup most of the losses within three months, shows an analysis by Elara Securities. 

There have been 16 such instances of fall in markets, including the 2008 Global Financial Crisis, and in most occasions it managed to claw back the losses within three months, the analysis shows.

Elara is expecting history to repeat itself. “We expect the market to rebound from current levels due to valuation