A market correction happens when a stock market index (like Sensex, Nifty, or S&P 500) falls by about 10% or more from its recent peak. It’s a common part of financial markets, not a crash — and usually not the end of a long-term uptrend. �

Wikipedia +1

📊 What It Means

🔹 A market correction reflects a pullback in prices after strong gains — investors start selling to lock in profits or react to uncertainty. �

🔹 Corrections are shorter and less severe than bear markets (which are drops of 20% or more). �

🔹 They reset valuations and help prevent unchecked over-bubbles in prices. �

INDmoney

NerdWallet

Wikipedia

📍 Why It’s Happening Now (2026 Context)

In markets like India in early 2026:

• Indices have slid sharply — large, mid & small caps are down after recent highs amid foreign investor selling and risk aversion. �

• Elevated volatility indicators show traders are cautious and liquidity pressures growing. �

• Uncertainty in global economies and credit markets may prolong sharp swings and corrections. �

Republic World

Republic World

Business Today

📌 What Investors Should Know

✔ Corrections are normal: They happen regularly and can occur even in healthy markets. �

✔ Not always a crash: Corrections don’t always turn into deeper bear markets. �

✔ Opportunity for long-term investors: These pullbacks often become buying opportunities if fundamentals remain strong. �

✔ Volatility vs. trend: Short-term swings don’t always change the long-term uptrend — patience and discipline matter. �

NerdWallet

The Motley Fool

The Motley Fool

thrivent.com

🧠 Quick Summary

Market correction = ~10%+ drop from recent highs

Bear market = 20%+ drop

Corrections are temporary pullbacks that reshape valuations, driven by sentiment, policy changes, or economic signals. ďż˝

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