Indo-Pak Tensions Rattle Markets, But Investors Remain Steady
One, the war, thus far, has proven India's superiority over conventional warfare, therefore, a any further escalated conflict will cause immense destruction to Pakistan
Indo-Pak Tensions Rattle Markets, But Investors Remain Steady
India news: The stock market in the United States began on a down basis on the Friday and were weighed down by the growing tensions in the geopolitical sphere that are brewing between India as well as Pakistan. But the tense border conflict did not affect India stock market down has remained ahead in the indo-pak war as analysts claimed.
The benchmark Sensex was trading at 0.68 percent 547 points down to 79,787.78 in addition to it was down on the NSE Nifty Index by 0.79 percent (192 points) at 24,081.50 at 9.40 am IST. The market was buoyed by positive global signals, strong Asian markets and a surge of foreign investors.
Why does the market not crash?
Under normal circumstances in a day like this markets would've experienced massive cuts. However, this didn't take place due to two reasons. One, the ongoing conflict to date, has shown India's obvious superiority to traditional warfare Therefore, any further escalated conflict could cause massive destruction to Pakistan.
The macros in the domestic economy are strengthened due to the strong growth in GDP forecast for this year, as well as the decreasing rates of interest. These are the main reasons the foreign portfolio investor (FPIs) are purchasing within the Indian market in the last 16 trading sessions. Foreign portfolio investors were net purchasers of more than Rs 2,007 crore on the Thursday, and purchased more than 11500 crore rupees in 5 trading hours thus to the end of this month.
Investors shouldn't be worried and remain in the game
Investors shouldn't panic and leave the Indian markets today immediately if conflict gets worse or continues for longer than a few days experts say. "Remain in the market, keep an eye on developments and then wait for dust to clear," said an experienced market analyst.
"As we've been advising our readers, it's best to plan ahead instead of panicking. We recommend traders be sure to keep leveraged and speculative position low and make use of derivatives for hedging short-term risks," said Devarsh Vakil Director of Prime Research, HDFC Securities.
