The indian Army, in a joint operation of the three services, has successfully attacked nine terrorist camps in pakistan and Pakistan-occupied kashmir (PoK). In this, four targets, including Bahawalpur, Muridke, and Sialkot in pakistan, and five targets in PoK, were destroyed. The main question for stock market investors is how much impact this attack will have on the stock market. At the end of yesterday's trading, the Sensex index fell by 155.77 points to 80,641.07 points, while the Nifty index fell by 81.55 points to 24,378.60 points. Although the trading ended with a decline on May 6, the Nifty index is trading at 24,351.50 points on the morning of May 7. This is expected to open higher on the BSE and the National Stock Exchange today. Investors will gain more confidence when they see how the indian stock markets have been affected by the five major conflicts between india and pakistan in the past.
There have been many attacks between india and pakistan, from the 1999 Kargil war to the 2019 Pulwama attack, and today's Operation Sindoor. These conflicts have created fluctuations in India's Sensex and Nifty indices. While the markets have faced a decline in some conflicts, they have risen strongly in others.

Kargil war (1999): During the Kargil war, which took place from May 3 to July 26, 1999, the Sensex and Nifty indices fell by just 0.8%. The victory of the indian Army gave investors confidence.

Indian parliament Attack (2001): The terrorist attack on the indian parliament on december 13, 2001, caused an immediate decline in the indian stock markets. However, as news emerged that the situation was under control, the markets recovered. Ultimately, the Sensex closed down 0.7% and the Nifty 0.8%.

Mumbai 26/11 Attacks (2008): The terrorist attacks in mumbai on november 26, 2008, paralyzed the city of mumbai, but indian stock markets rose surprisingly. In the two days following the attacks, the Sensex rose by about 400 points and the Nifty by 100 points. The prompt action of the indian government and security forces gave investors confidence.

Uri Attack and Surgical strike (2016): On september 18, 2016, terrorists attacked an indian army base near uri in Jammu and Kashmir. In retaliation, indian forces carried out a surgical strike targeting terrorist camps in Pakistan-occupied kashmir (PoK). These events caused indian stock markets to fall by more than 2% between september 18 and 26.

Pulwama Attack (2019): The terrorist attack in Pulwama, kashmir - SRINAGAR/JAMMU' target='_blank' title='jammu and kashmir-Latest Updates, Photos, Videos are a click away, CLICK NOW'>jammu and kashmir, on february 14, 2019, negatively impacted the indian stock markets. From february 14 to march 1, the Sensex and Nifty indices fell by over 1.8%. The attack heightened tensions between india and pakistan, prompting investors to seek safe havens.

All five of these conflicts show that indian stock markets are recovering rapidly. The declines during the Pulwama and uri attacks have shown confidence in the indian market during events such as mumbai 26/11 and the Kargil war, rather than the fear that has built up among investors. The rapid recovery during the parliament attack is particularly noteworthy. While conflicts between india and pakistan can cause short-term fluctuations in the stock markets, the fundamentals of the indian economy are strong enough to weather such tensions. These historical events confirm the resilience of indian stock markets. Experts advise investors to avoid panic during such crises and adopt long-term investment strategies.
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operation sindoor

Sowmiya Sriram

07/05/2025 10:19 AM