New Delhi, Jan. 14 -- We at Equitymaster are not in the business of predicting the stock market. We believe instead in being prepared for any eventuality.

A lot of money (i.e., liquidity) has flowed into the Indian stock market from the bank accounts of retail investors of late. Foreign investors may have sold but domestic investors have more than made up for it, keeping the upward pressure on stock prices intact. This was the market situation at the end of 2025.

The new year started with positive sentiment, with the Nifty scaling an all-time high. However the past week delivered a big blow. With the Nifty taking a tumble, investors are beginning to wonder if the much-anticipated correction is finally here.

So, could the stock market c...