The algorithmic amplification of fear

If one were to judge solely by social media commentary, you might believe we're in a devastating market crash. The reality, however, is far more mundane. The Indian stock markets have indeed declined over recent months, but by historical standards, this correction has been rather modest. The Sensex remains up 8.8 per cent over the past year, and looking at the five-year horizon — a more meaningful timeframe for serious equity investors — the picture is even more reassuring despite including the dramatic Covid-19 downturn.