New Delhi, March 4 -- After a 16 per cent decline from its peak, frontline index Nifty 50 appears oversold, raising hopes among market participants for an imminent rebound. However, significant risks still loom. While a recovery is inevitable, the much-anticipated rebound is likely to take longer than expected.

Nifty 50 has plunged 4,158 points, or 15.82 per cent, from its peak of 26,277.35, hit on September 27 last year. The Sensex has declined 12,892 points, or 15 per cent, from its peak of 85,978.25.

Nifty stocks such as Tata Motors, Trent and Bajaj Auto have plunged over 30 per cent while stocks in Nifty 500 index have crashed up to 60 per cent since October.

The cumulative market capitalisation of the BSE-listed firms has dropped ...