Bull runs and intermittent corrections

Should equity investors be worried after the recent market correction? The benchmark S&P BSE Sensex has corrected about 8.5% over the past one month, but prior to that markets had rallied 42% from February to November last year. There have always been intermediate corrections in the markets whenever indices have rallied at a stretch. In the previous bull run between 2005 and 2008, the Sensex corrected four times between 10% and 30%, followed by strong bouncebacks up to 65%. Analysts say intermediate corrections are always healthy in a bull market as they remove the froth.