New Delhi, April 7 -- A rare occurrence for the benchmark Nifty 50 index-four consecutive months of decline-has dampened investor sentiment. However, historical trends suggest such phases have often improved the odds of stronger future returns.

Markets rarely move in a straight line, and periods of sustained decline have typically been followed by recovery, according to DSP Mutual Fund's April edition of its Netra report.

Data shows that four straight monthly declines in the Nifty 50 are uncommon. In March, the index recorded a 11.3% loss-its worst monthly fall in six years-marking the fourth consecutive monthly drop during which it lost 15%. Such a streak of four or more months of losses has occurred only seven times historically, the ...