DOES INDIAN STOCK MARKET BEAR HEAVY CONSEQUENCES OF INDIA-PAKISTAN TENSION?

Pakistani fighter jets irrupted into Indian boundaries and targeting military escalations. In this one Pakistani aircraft was shot down by India’s MIG-21 Bison. Indian Airforce reacted to this and conducted airstrikes on terrorist camps inside Pakistan and succeeded but lost one Mig-21 fighter jet, there was a report of one pilot being missing. In yesterday’s viral video it was shown that IAF Wing Commander Abhinandan Varthaman has been tortured and refused to leak any details related to the military operation plans, which is highly praiseworthy. Meanwhile, tension is arising in both countries as IAF and PAK are flying towards volatile LOC area.

Now the question here arise that Weather these tensions in both countries affect stock market in the long run?

There was already a heavy down fall in Sensex and various other stocks due to this. Yesterday, there was a heavy reduction in Sensex, following by minor difference in Rupee-Dollar rate. The overall stock market fell 2.1% that day which continue to decline for few more days. Minor rise in stocks can be seen. Sensex, which is already suffering from last four months, will hardly see a beam of light. Though most experts believe that stock market will not be impacted and these will be short term implications. They are contrasting this situation with Kargil war, 1999 when the similar situation happened but market recovered eventually.   

Moreover, India is heading for its general elections in few months and mixed reactions from Indian people on whether go for war or peace can put a pressure on governmental decisions which will decide the future of stock market.

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