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How To Navigate Markets Post India- Pakistan Tensions & What Triggers To Watch Out For At This Time - BT TV BusinessToday

Published 11 hours ago1 minute read

Mutual fund experts advise investors to avoid panic and stay invested in large-cap funds and keep a multi-asset approach which means a mix of equity, fixed income instruments and some exposure to gold at a time when India is in between a geopolitically tensed situation. Now reacting to operation Sindoor, a strike by the Indian armed forces on nine terror hubs in Pakistan and Pakistan-occupied Kashmir (PoK) on the midnight of May 7, the benchmark stock markets shook off with jitters but had remained overall steady.  As per studies by experts, historical data seems to show that, whenever such skirmishes have happened between India and Pakistan, it has had very short-term impacts on equity markets, which means over longer periods which is after six months to a year there is very minimal effect. During previous conflicts—Kargil (1999), Parliament Attack (2001), Surgical Strikes (2016), and Balakot (2019)—markets initially demonstrated volatility before stabilizing. The typical correction ranged between 5-10%, followed by recovery periods spanning two to six months depending on conflict intensity.

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