Stock Market Corrections, Crashes, and the Role of FIIs and DIIs
Understanding the Difference Between a Stock Market Correction and a Crash The stock market rarely moves in a straight line. Prices rise, fall, recover, and sometimes swing sharply within a short period. Investors often hear terms like stock market correction and market crash , but many people use them interchangeably even though they are quite different. Knowing the difference can help investors make smarter decisions and avoid panic during volatile periods. A stock market correction usually refers to a temporary decline, while a crash signals a deeper and more aggressive fall in prices. At the same time, investor activity from FIIs and DIIs also plays a major role in shaping market direction. Understanding what is fii and dii in stock market can help investors interpret market trends with more clarity and confidence. What Is a Stock Market Correction? A stock market correction happens when major market indices or individual stocks fall by around 10% from their recent highs. T...