India-Pakistan conflict: Possible impact on the Indian stock market you need to know | Einsmark news

Indian stock market: Growing geopolitical tension between India and Pakistan, caused by a terror attack in Kashmir, has caused investor concern and took to some profit. Due to the increasing tension, the market sentiment according to experts can remain cautious. In the past five days, Sensex and Nifty 50 have increased an increase of one percent. For the week, Nifty 50 and BSE Sensex contracted 0.80 percent and finished 24,039.35 and 79.212.53 respectively. The volatility of the market increased slightly, with the India VIX by 11 percent, partially reversing the 23 percent drop from the previous week. “After a positive beginning supported by favorable global clues, Indian benchmark indices fell sharply. It was due to the profit discussion that came when borderline tensions between India and Pakistan escalated, after terror attacks in Pahalgam, Kashmir. Khemka, head of the heads, a divide, management, Motilal Oswal Financial Services Ltd. Khemka, further added that it was the exception of the fact that it was the exception of 0.7% on the back, a rally in the technical heavy US Nasdaq index yesterday. Hotel and aviation supplies have sold pressure, as tourism is expected to be negatively affected after the attack on tourists in Kashmir. What does history suggest? Vinod Nair of Geojit Investments Ltd, said that India has historically shown a strong resilience for geopolitical factors, thanks to the robust nature of its domestic economy. ‘Foreign investors are likely to have a guard and guard approach in the short term to review the geopolitical tension. Based on the historical performance of India, it exerted strong resilience during geo-political factors, given the lively nature of the domestic economy. For long -term investors, it is fair to use it as an opportunity to get quality shares/sectors during further dips for the long term. However, market experts further indicate that geo-political developments between India and Pakistan can add volatility to the Indian market over the next few days. According to Anand Rathi report, Indian stock markets have never had a correction of more than 2% during times of increased tensions with Pakistan, except for the 2001 attack in 2001. Even the correction during the 2001-02 attack was probably more affected by world factors, especially the drop of ~ 30% in the S&P 500 around that time. On average, the corrections of the stock market during conflict were 7%, with the median correction 3%, the report added. “Based on historical precedent and current global risk prices, even in the case of considerable escalation, we believe that the Nifty 50 is unlikely to correct more than 5-10%. Investors who currently follow the 65:35:20 strategy should maintain the award. Stock market probably will perform in the midst of conflict in India-Pakistan? The rising geopolitical tension between India and Pakistan led to a sharp sale, which wiped out the week’s profits. Bhosale further said that by exceeding the Swing Highs in February March, Nifty confirmed a strong bullish outbreak on the maps. The breakaway zone around 23900–23800 provided important support on Friday and still serves as an important important level. If geopolitical tension is escalated or this support is violated, a deeper correction against the 23500–23300 zone may unfold. “At the top, although the broader trend remains bullish, immediate resistance is seen at 24250–24350. A move above this zone will confirm a continuation of the primary upward trend. Traders must remain careful and monitor these key levels as the next leg of the move is not as smooth as the recent Rallen. Disclaimer: This story is for educational purposes only.