Every few years, something sends shockwaves through markets. Three events from recent Indian history show why long-term investors shouldn't panic.
2016: Demonetization
NIFTY 50 fell 8.08% in three weeks — then recovered as investors looked past the disruption.
2018: NBFC Liquidity Crisis
After IL&FS defaulted, NIFTY 50 fell 10.32% between September and October — and recovered as weak players were cleaned out.
2020: COVID-19
The Nifty 50 crashed 27.22% between February and April 2020 — then returned around 24% within a year of the bottom.
The lesson
Markets are resilient, time smooths out volatility, and staying invested matters more than timing. The market doesn't reward perfection; it rewards consistency.