India-Pakistan: Rising geopolitical tensions caused Indian indexes to open marginally lower after India launched strikes on nine sites in Pakistan in retaliation for the incident in Kashmir last month.

India-Pakistan war Imapacts:

In early trading, the Nifty 50 was down 0.06% to 24,366, and the BSE Sensex was down 0.06% at 80,596. But with the BSE Sensex rising 70 points to 80,710 and the Nifty 50 rising 10 points to 24,403, the market made a U-turn and failed to dampen investor sentiment.

Impact on Indian Stock Market Amid War:
According to Bajaj Broking’s Market Outlook study, the Nifty 50 has often demonstrated resilience during prior periods of elevated tensions between India and Pakistan, with market downturns being comparatively mild, averaging a drop of just 5.27%.

A reputed brokerage firm said that, “Exceptions to this trend include the 2001 Indian Parliament attack and the 2008 Mumbai Taj attacks, where the market fell more sharply, though much of that drop was due to global economic factors rather than the conflicts themselves. Overall, this shows that investors tend to look past short-term geopolitical events and focus more on the broader economic outlook.”

Let’s look at the Stock Market numbers amid the war and attack situations in India.

1. The 2019 Pulwama Attack

According to research by Anand Rathi, the 2019 Pulwama incident harmed the Indian stock market, with Indian indices falling more than 1.8% between February 14 and March 1.

2. Surgical Strikes and the Uri Attack in 2016

Between September 18 and September 26, the Indian market dropped by over 2%. Targeting terrorist launch sites across the Line of Control in Pakistan-occupied Kashmir, the Indian government launched a surgical strike in retaliation for the terrorists’ attack on an Indian Army post near Uri in Jammu and Kashmir.

3. The 2008 Mumbai 26/11 terror attack

Even though Mumbai was under siege in 2008, the Indian market saw a good trend. The Nifty gained 100 points on the two days of the attacks, while the Sensex increased by about 400 points.

4. The 2001 Attack on the Indian Parliament

The 2001 attack on the Indian Parliament caused the Indian benchmark indices to react rashly, but both the Sensex and the Nifty recovered their losses as news broke that the situation was under control. The Nifty ended the day 0.8% lower than the Sensex, which ended the day 0.7% down.

Also Read: Who is Wing Commander Vyomika Singh & Colonel Sofiya Qureshi?

5. The 1999 Kargil War

During the Kargil war, the Indian market demonstrated resiliency and had a minor fall of 0.8% between May 3, 1999, and July 26, 1999.

This suggests that even while there is some short-term volatility, the market usually bounces back and even makes good profits in the medium run.

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