Keep faith in equities as they have given good returns after every bout of major correction. That’s the word coming in from market mavens after a scary ride for investors last week when benchmark indices plunged into record lows only to stage a remarkable recovery in the last session.

Last Friday, the 30-share Sensex gained over 5380 points from its day’s low of 29388.97 to close with a gain of 1325.34 points, or 4.04 per cent, higher at 34103.48. However, the rebound came after trading was halted for the first time in 12 years as the benchmark indices fell over 10 per cent with the Sensex even falling below the 30000-mark.

Fears of a global recession because of the rapidly spreading coronavirus to other countries have seen the Sensex plummeting 3473.14 points, or 9.24 per cent, during the week. The bearish trend has also severely hit valuations of even heavyweights such as TCS and Reliance Industries.

With good news still eluding on the coronavirus, it is feared that investors may be in for a bumpy ride in the coming week. However, experts point out that the key indices are unlikely to go below the lows seen last week.

“We may not see the repeat of the 5380-point intra-day rally that was witnessed on Friday. However, at the same time, the markets are unlikely to fall below the low (29388.97) that was touched last week. Thus, we may see stock prices again falling, but the extent of the decline will not be the same as we have seen till now,” Arun Kejriwal, director at investment advisory firm KRIS, told The Telegraph.

The retail investor, according to Kejriwal, should use the opportunity to invest in stocks, but it should not be done only on the basis of the correction that has been seen till now.

“If a stock is cheap at the current levels, it does not mean that it is a good buy. The investor should do his research and then only put his hard earned money,” he added.

While there are concerns that the recent drop in equity values could deter the retail investors, analysts also cite previous instances where major corrections have yielded good returns, provided individuals ride out the storm and stay invested.

According to a note from ICICI Direct, while the Nifty has corrected more than 30 per cent in the last three months, historically there have been six instances during the last two decades, where it has fallen more than 25 per cent.