Mumbai, April 28
Even as tensions between India and Pakistan rise once again following the barbaric Pahalgam terror attack, Indian stock markets have showcased resilience every time the two neighbouring nations went into conflict.
While investors may have initially turned cautious, historical trends reveal that Indian markets have consistently overcome geopolitical challenges and emerged even stronger.
Whenever tensions flared along the Line of Control (LoC), the Indian stock markets saw brief declines but soon staged strong recoveries -- reflecting the underlying strength and confidence in India's economic growth.
Take the example of the Balakot airstrike. After the Pulwama terror attack, when the Indian Air Force carried out successful airstrikes on terror camps in Balakot on February 26, 2019, the Sensex fell by 239 points and the Nifty by 44 points.
However, the very next day, the Sensex rebounded, opening 165 points higher and closing flat -- showing a swift recovery.
Similarly, after the Pulwama attack on February 14, 2019, markets showed only a minor reaction, with just a 0.2 per cent fall the following day -- highlighting investors' long-term confidence in India's stability.