More dips ahead suggest bearish phase, going by major falls since 2008

Strategy reports advocate need for caution amid volatility, with likelihood of more declines before a sustained rise signals end of bear market

Indian markets could well see more falls before a sustained rise signals the end of the bear market — at least if the past is any indicator.

Each of the major falls since 2008 has seen the market rallying before falling again, and repeating the process multiple times before finally reversing losses.

There were four such instances during the global financial crisis in 2008-09, five during the 2011 Euro crisis, two during China’s 2015 currency devaluation, and three during the taper tantrum, noted the data from foreign brokerage firm Jefferies India.

The 2008-09 period saw dips ranging between 18 per cent and 45