New Delhi, March 3 -- Despite stocks, especially small caps, correcting steeply from their highs of September, markets could still undershoot on the downside as investor sentiment remains weak. However, they aren't likely to stay there for long, according to Mahesh Patil, chief investment officer of Aditya Birla Sun Life Asset Management Company Ltd.

Patil cites data indicating that the median stock in the broader market (BSE 500) has fallen more than 37% from its peak, a level at which markets tend to bottom out during a normal correction phase.

He also doesn't expect large-scale outflows from mutual fund investors. Data shows that out of the past 20 episodes of market corrections, 17 of them have seen systematic investment plan (SIP) ...