In response to the Pahalgam terror attack, India attacked 9 terrorist bases inside Pakistan late on Tuesday night and destroyed them. After this attack, the move of the Indian stock market on Wednesday remained almost stable. Although veteran investors Shankar Sharma (Shankar Sharma) Believe that this accurate reply may spoil the stock market sentiment. Especially in view of this, this stock market has already been in a continuous weak position since the selling started in September last year.
Shankar Sharma said, “The Indian stock market was already in a state of staggering and now this new tension will only increase the concerns. The market has been seeing a decline trend since last September and in such a situation, no tension can be seen as a good sign.”
India retaliated on Tuesday night by targeting 9 terrorist bases within Pakistan and Pakistan -occupied Kashmir (POK). This action was named ‘Operation Sindoor’. The action was taken on 22 April in response to the terrorist attack in Pahalgam, killing 25 Indians and 1 Nepali citizens.
However, many market participants believe that tension has been seen on several occasions between India and Pakistan earlier and its impact on the stock market has been limited. But Shankar Sharma’s opinion is reversed.
‘Things are not the same every time’
He said, “People are thinking as before that as before, the situation will not happen every time. Every time the situation is not the same. The actual impact should be assessed in the market’s current conditions. Our stock market bull rally has already been five to six years old. In such a situation, there can be a big shock on this turn.”
He believes that this event will definitely affect the stock market sentiment and can have more effect on some sectors.
What was the effect of previous incidents?
On February 26, 2019, when the Indian Air Force carried out air strikes on terrorist bases in Balakot, Pakistan, the Sensex fell by 239 points, while the Nifty 50 fell by 44 points. However, the next day the market returned and the flat closed at the end of the business.
After the Pulwama attack in 2019, there was a mild response in the stock markets. On February 15, 2019, the Sensex fell by just 0.2 percent. Conversely, the stock markets saw a sharp decline after the surgical strike in 2016 after the Uri attack, with the Sensex fell around 400 points and the Nifty fell 156 points.
How is the reaction of the stock market this time?
On Wednesday 7 May, the Sensex closed up 105.71 points after the ups and downs. At the same time, the Nifty increased by 35 points. This shows that the stock market is not taking this incident more seriously.
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