Are we grinding through a tough time correction?
A time correction takes place in a more subtle way. Instead of falling hard, the index drifts sideways or slips modestly for a long stretch — while earnings typically catch up. Between November 2010 and end-2013, the Nifty was essentially flat, near 6,300 at both ends three years apart, even as company profits grew. Because prices stalled while earnings rose, valuations dropped, but without a crash. The current market environment also appears to be a time correction. From its September 2024 peak of near 26,200, the Nifty is down only about 10% two years on — a shallow, drawn-out consolidation rather than a sharp fall.
