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For the last five months, Indian markets have been continuously declining, and they are experiencing very volatile movements.\u00a0 Indian markets have wiped out billions of dollars of investors’ wealth due to the excess fall in the market.\u00a0<\/span>\u00a0<\/span><\/p>\r\n People consider it a crash, whereas some consider it a correction. But first, what is Crash & Correction?\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\r\n What\u2019s happening in the current scenario, a crash or correction?\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\r\n First, let\u2019s understand the difference between both. Then, we will discuss past events when markets experienced a similar situation to now and how long it took for them to rebound.<\/span>\u00a0<\/span><\/p>\r\n If a market fall is in the range of 10% -20% from a recent market high, we call it Correction. It is a natural part of market cycles, which are due to overvaluation, economic concerns, or geographical events. <\/span>\u00a0<\/span><\/p>\r\n These corrections can last from a few weeks to several months but usually they do not signal a long-term financial crisis. <\/span>\u00a0<\/span><\/p>\r\n But if the markets fall more than 20%, we usually call it a Crash. They often occurred in weeks or days. Unlike corrections, crashes are typically fueled by selling, systematic economic crises, or speculative bubbles bursting. <\/span>\u00a0<\/span><\/p>\r\n So, what\u2019s happening now? Correction. <\/span>\u00a0<\/span><\/p>\r\nWhat is Crash & Correction?\u00a0<\/span><\/b>\u00a0<\/span><\/h2>\r\n