A Bear Market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.
As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the National Stock Exchange Fifty (NIFTY) or Stock Exchange Sensitive Index (SENSEX), over at least two months, is considered an entry into a bear market.
Typically, bear markets are associated with declines in an overall market or index, but individual securities or commodities can be considered to be in a bear market if they experience a decline of 20% or more over a sustained period – typically two months or more.
During a bear market, many investors look to secure their assets or even profit from a falling market using inverse ETFs or derivatives.
