Market Update

History says a 40% rally could be next?

Nifty Ends 4-Month Losing Streak | History Hints at 40% Rally
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Nifty Market Update

Economic Times • April 4, 2026

Nifty’s Rare 4-Month Losing Streak Just Ended — History Says a 40% Rally Could Be Next

After a sharp 14.8% decline over four months, historical data points to strong rebound potential

Point-wise Summary

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End of Rare Losing Streak

Nifty 50 ended its rare four-month losing streak in March 2026 with an overall decline of 14.8%. Such prolonged losing streaks have occurred only 7 times in the index’s history.

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Historical Rally Potential

After similar 4+ month losing streaks, Nifty delivered average one-year returns of 40.7% (median 20.8%). Three-month average return: 12.2%. Six-month: 22.4%.

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Strong Past Recoveries

Notable examples include +117.9% return after Jan 1991 streak and +65.6% after Aug 1998. Longer declines have historically led to even stronger rebounds.

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Market Sentiment & Fund Actions

  • • Selloff seen as capitulation point — bottom may be near
  • • ICICI Pru raised equity allocation to 61.9% — highest in nearly 5 years
  • • Quant MF views it as buying opportunity; expects earnings recovery, reforms & policy support
  • • Positive on energy, infra, private banks, pharma, telecom & consumption themes
📅 April 4, 2026 • Past performance is not indicative of future results

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