- Nifty 50 and Sensex have entered correction territory amid geopolitical tensions and rising oil prices
- Brent and WTI crude prices surged to about $119.50 per barrel during the session
- Historical Nifty corrections often last weeks to months, with declines unfolding gradually
Benchmark indices have entered correction territory following Monday's sharp selloff, with the Nifty 50 and Sensex pulling back from their recent highs amid escalating geopolitical tensions and rising crude prices. The Nifty 50 is currently about 10% below its record high, while the Sensex is roughly 11% off its peak, placing both indices in correction territory.
The decline comes against the backdrop of an intensifying Iran-United States-Israel conflict, which has triggered a sharp rally in oil prices. During the session, Brent crude climbed to about $119.50 per barrel, while WTI crude rose to around $119.48.
Market corrections often tempt investors to rush in and "buy the dip." But historical data from recent Nifty corrections suggests that declines frequently take time to play out, meaning early buying may not always capture the lowest levels.
A review of several correction phases over the past few years shows that market downturns can stretch from a few weeks to several months, depending on the underlying triggers and broader market sentiment.
Past Nifty Corrections
One of the most prolonged declines occurred between October 14, 2021 and June 17, 2022. During this period, the Nifty fell from 18,338.55 to 15,293.5, marking a 16.6% correction that unfolded over 246 days.
The extended duration highlights how macroeconomic factors-such as tightening global liquidity and rising interest rates at the time-can keep markets under pressure for months rather than weeks.
Another notable correction took place between December 2, 2022 and March 24, 2023, when the index declined from 18,696.1 to 16,945.
Although the fall was smaller at around 9.3%, the correction still lasted 112 days, demonstrating that even moderate pullbacks can take several months before stabilising.
More recently, the market experienced a significant drawdown between September 27, 2024 and February 28, 2025. During this phase, the Nifty dropped from 26,178.95 to 22,124.7, representing a 15.48% decline over 154 days.
The latest correction cycle has been relatively shorter so far. From January 2, 2026 to March 6, 2026, the index slipped from 26,328.55 to 24,450, translating into a 7.13% decline over 63 days.
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Nifty 50's Resilience
Historically, the median drawdown for the Nifty during geopolitical events has been around 4.1%, with reversals typically occurring within about 0.1 months.
NDTV Profit's research highlights relatively modest declines during some conflicts, including about 0.6% during the Kargil conflict and around 0.7% during Israel-Iran tensions.
However, larger declines have also been recorded during major global conflicts. The Nifty dropped about 7.9% during the Iraq war and roughly 7% during the Russia-Ukraine war, both followed by rebounds.
Other conflicts saw deeper temporary declines before markets recovered, including around 9.8% during the Libyan civil war, approximately 8.9% during the Syrian civil war, and about 5.9% during the Israel-Hezbollah conflict.
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