An SBI Research's analysis of market crashes (both domestic and global) since 1992 reveals that in cases where domestic macro-cues were involved, the markets stayed at a much lower level when compared with only external factors.
"Given that the current crash is driven more by the later (external factors), we are thus convinced that the recent crash is an aberration and markets will correct based on upcoming macro numbers which will be positive," the note said.
The first quarter GDP growth data is likely to be a big positive surprise, and so will be the August CPI numbers, it said. The official data on growth in gross domestic product (GDP) in April-June quarter will be released on August 31.
Global economy has experienced huge financial volatility with bourses across the board witnessing a slaughter in the last few days. There has been a huge sell-off since August 17.    
"Even though the Sensex has suffered a decline and the currency has breached Rs 66 per USD, the data on equity premia and the comfortable foreign reserves (USD 354 billion as on August 14) show that the macro fundamentals are still in a significantly better shape than they were previously," the report said.
The index is currently hovering around 26,000 levels. The report further noted that the Yuan devaluation was a blessing in disguise for emerging markets.


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