Can Markets Stay Calm Amid Conflict? Pahalgam Attack, 'Operation Sindoor' & What It Means For Investors

The recent terror attack in Pahalgam has shocked the country and drawn attention from across the world. In response, India carried out ‘Operation Sindoor’, a military strike targeting terrorist camps in Pakistan and Pakistan-occupied-Kashmir.

This has increased security concerns and led to rising tensions between the two countries. Still, despite the emotional and political impact, the Indian stock market has remained calm.

A report by Anand Rathi, a leading brokerage firm, says that the market is unlikely to be hit hard by these events.

Why Markets Stay Resilient?

There are a few reasons why markets are not reacting strongly:

Low chance of full-scale war – Even though both countries often exchange heated words, they usually avoid going into a full-scale war. The conflict often stays limited.

Investors focus on the basics – Market participants look at earnings, government policies, and overall economic stability. These are the main factors driving investment, not temporary tensions.

History gives confidence – Over the years, from the Kargil War to the Pulwama attack, the Sensex has shown that it can bounce back quickly from geopolitical shocks.

What's the Market Impact?

While there could be some short-term ups and downs in the market, Anand Rathi believes there will be no major or long-lasting impact. The Indian economy is in a strong position, and that continues to be the main factor supporting the stock market.

Also Read: Top JeM, LeT Terrorists Killed in Op Sindoor, List Released

Sector-Wise Impact

Some specific sectors and companies might see mild effects:

Tourism and Hospitality – The Jammu & Kashmir region will likely face cancellations, which could hurt local tourism. But for listed companies like Indian Hotels, the effect is very small.

Aviation – Airlines like IndiGo may see a small drop in passenger traffic to the region, but the overall impact is minor.

Defence Companies – This is one area where the impact may be positive. Stocks like Bharat Forge, which makes defence platforms, could benefit in the long run. Additionally, companies like Solar Industries and Bharat Dynamics, which supply defence materials, may see gains in the near term.

Disclaimer: The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.