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2025-05-07 05:30:46 pm | Source: SmartWealth.ai
Quote on impact on markets and economy due to ongoing Indo-Pak tension and operation sindoor by Pankaj Singh, smallcase manager and Founder and Principle Researcher at SmartWealth.ai
Quote on impact on markets and economy due to ongoing Indo-Pak tension and operation sindoor by Pankaj Singh, smallcase manager and Founder and Principle Researcher at SmartWealth.ai

Below the Quote on impact on markets and economy due to ongoing Indo-Pak tension and operation sindoor by Pankaj Singh, SmartWealth.ai 

 

"Geopolitical tensions like the ongoing Indo-Pak standoff under Operation Sindoor tend to cause immediate market volatility, as seen with the Nifty and Sensex dropping 0.6–0.8% recently. Historically, such episodes trigger short-term dips—Kargil War (-4%), Parliament Attack (-3%), Mumbai Attacks (-4%), and Balakot Airstrike (-3%).

However, markets have consistently rebounded in the long term. After the Kargil War, the Sensex surged 63% within a year. Post-Parliament Attack, it rose over 20% the following year. Following the Mumbai Attacks, it gained 60% within 12 months, and after Balakot, it climbed 15% by year-end.

While short-term caution is reasonable, history shows that Indian markets demonstrate strong resilience once clarity returns. Unless accompanied by broader economic or global shocks, Indo-Pak tensions have not had a lasting negative impact. Investors should focus on fundamentals, not fear."

 

 

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