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. �
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