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Stocks in India Set to Rebound After 3-Month Drop, History Says

  • Nifty 50 rallied after every prior 3-month selloff since 2008
  • Nifty gained an average 7% the month after a trio of declines

Indian equities are poised to rebound from a three-month selloff triggered by rising interest rates and an exodus by foreign funds, if history is any guide. 

NSE Nifty 50 Index dropped nearly 10% from April through June, marking the eighth time since 2008 that the benchmark fell for three consecutive months. But in each of the seven previous incidences, the gauge swung the other way and delivered an average gain of 7% in the fourth month, data compiled by Bloomberg show.