The latest market data underline the scale of the correction. As of October 23, 2026, the Nifty 50 was down 14.31% from its all-time high, while the Nifty Next 50 had fallen 15.52%. The Nifty 100 and Nifty 200 were down 14.16% and 13.09%, respectively, while the broader Nifty 500 had declined 12.80%.
The correction has also extended to mid- and small-cap stocks. The Nifty Midcap 150 was 12.92% below its all-time high, while the Nifty Smallcap 100 had fallen 12.13%. All 11 indices in the data were at least 11% below their respective peaks.
Historical analysis by WhiteOak Capital, based on the Nifty 50 Total Return Index (TRI), offers another perspective on how investors might navigate such periods.
Should you continue your SIPs?
For investors with a long investment horizon, stable income and an asset allocation suited to their risk appetite, continuing SIPs can help maintain investment discipline during a correction. When markets fall, the same SIP amount buys more mutual fund units, although this does not guarantee gains or prevent further losses.
WhiteOak Capital's analysis of 18 Nifty 50 TRI drawdowns of 10% or more since 2000 found that 11 episodes, or 61%, subsequently deepened to a decline of at least 15%. The average maximum drawdown across these episodes was 23%, while the median was 15%.
This suggests investors should not assume that a 10% correction marks the bottom. However, continuing SIPs should depend on whether the investments remain aligned with their goals and whether the investor can withstand further volatility without needing to withdraw the money prematurely.
Should you invest a lump sum now?
A market correction can create opportunities for investors with surplus cash, but deploying the entire amount at once carries the risk of investing just before another leg of the decline.
The WhiteOak Capital analysis found that 54% of rebounds of 5% or more were followed by a subsequent lower low. Even after rebounds of 8% or more, 43% were followed by a lower low.
These findings show why a sharp recovery over a few sessions cannot, by itself, confirm that a market has bottomed out. Investors considering a lump-sum investment could stagger deployment over time, based on their financial goals and risk tolerance, rather than try to predict the exact turning point.
Money needed for near-term expenses or emergencies should not be redirected into equities simply because valuations appear more attractive after a fall.
Is waiting for a deeper correction a better strategy?
Waiting may appear prudent when markets are volatile, but it creates another challenge: identifying when prices have fallen enough to justify investing.
According to WhiteOak Capital's analysis, markets spent only 1%–7% of a correction's duration within 5% of the eventual trough. In other words, the period when markets trade close to their lowest point can be relatively brief.
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The study also found that all drawdowns of 20% or more in the period examined eventually recovered, with an average recovery time of around 13 months and a median of 7.5 months. These are historical observations, not guarantees about future recoveries.
The latest index data reinforce the uncertainty. As of October 23, the Nifty 50 was down 2.6% over 30 days and 11.8% over 365 days. The Nifty 500 had fallen 4.5% over 30 days and 8.1% over 365 days. These figures indicate that weakness has persisted beyond a short-lived market dip.
Investors who wait for a clear signal that the market has bottomed may miss part of a recovery. Equally, investing aggressively too early can expose them to further losses.
Should Aloka and likes move their money back into FDs?
FDs offer predictable interest over a specified tenure and can be appropriate for money earmarked for short-term goals or for investors who need greater certainty. But moving from equity to FDs solely because markets have fallen can turn temporary portfolio losses into realised losses.
The decision should depend on when the money is needed, the investor's ability to tolerate market fluctuations and the overall balance between equity and safer assets. Investors who discover that their equity exposure is too high may need to rebalance their portfolios, rather than make an all-or-nothing switch.
What should investors do now?
There is no single response suitable for every investor. Those with long-term goals and adequate financial reserves may consider continuing suitable SIPs. Investors with surplus cash could deploy it in stages, while those facing financial uncertainty should prioritise liquidity and avoid taking additional risks with money they may soon need.
The broader lesson from the current correction and historical data is that neither a market rebound nor a deeper fall can be predicted with certainty. Investors are better served by a disciplined investment plan, a suitable asset allocation and decisions based on their financial circumstances rather than short-term market movements.
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