The market reversed direction, showing resilience in investor confidence, with the BSE Sensex increasing by 70 points to reach 80,710 and the Nifty 50 rising by 10 points to 24,403.
In light of the India-Pakistan conflict, Indian stock indices opened slightly lower amid escalating geopolitical concerns, following India’s strikes on nine locations in Pakistan in retaliation for last month’s incident in Kashmir.
The BSE Sensex initially sat at 80,596, reflecting a 0.06% decrease, while the Nifty 50 also saw a 0.06% drop to 24,366 during early trading.
Nonetheless, the market rebounded, showing that investors’ sentiments were undeterred, as the BSE Sensex rose by 70 points to reach 80,710, with the Nifty 50 climbing by 10 points to 24,403.
performance of the Indian stock market throughout the five conflicts between India and Pakistan
Historically, the Nifty 50 has demonstrated resilience in the face of heightened tensions between India and Pakistan, with declines being relatively mild, averaging only a 5.27% downturn, as reported by Bajaj Broking’s Market Outlook report.
“Notable exceptions to this pattern include the 2001 Indian Parliament attack and the 2008 Mumbai Taj attacks, where the market saw sharper declines, largely influenced by global economic conditions rather than the conflicts themselves. Overall, this suggests that investors often overlook short-term geopolitical issues, focusing instead on the larger economic landscape,” the brokerage firm noted.
This suggests that although short-term fluctuations may occur, the market often rebounds and achieves significant gains over the medium term.
