Think a 20% market correction is rare? 45 years of Sensex data says otherwise
New Delhi, June 12 -- Every time markets correct 10-15%, investors begin to question whether the decline is temporary or the start of a more prolonged downturn.
The debate has resurfaced in recent months amid volatility driven by global trade tensions, changing interest-rate expectations and concerns over economic growth.
Historical market data suggests that such corrections have been far more common than many investors assume.
According to a FundsIndia analysis of Sensex data from 1980 to 2025, the benchmark index witnessed an average intra-year drawdown of around 20%. Yet nearly 80% of those years ended with positive returns.
Put differently, the average year included a correction that many investors would consider severe, but most ...
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