How the market bounces back sharply every time after a great fall

If historical data is any indicator, Indian investors need not fret over the recent market correction. Since 2000, the index has slipped more than 15% on 11 occasions. And barring 2008, it has bounced back sharply each time. Fund managers say the corrections provide an opportunity to buy quality stocks. "Volatility is not a negative thing as is generally perceived," says Sunil Singhania, CIO, Reliance Mutual Fund. "It provides an opportunity to build positions in otherwise great companies and offers a welcome opportunity to increase allocation to equities."



(Source: Bloomberg)

(Contributed By: Rajesh Mascarenhas)