Operation Sindoor: Why Indian Stock Markets Didn't Panic
Operation Sindoor: Indian stock markets remained volatile after India carried out Operation Sindoor, targeting terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). Experts believe this was already expected and priced in by the market, so there wasn’t a strong reaction.
On Wednesday, the BSE Sensex fell by 163 points, and the NSE Nifty slipped by 73 points in early trade. Major losers included Asian Paints, L&T, HCL Tech, Sun Pharma, and UltraTech Cement.
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Past Military Events and Market Reactions
Balakot Airstrikes (2019): Quick Recovery
After the Balakot airstrikes on February 26, 2019, the Sensex dropped 239 points, and Nifty lost 44 points. However, both indices bounced back in the next session. The markets viewed the move as strong but measured, so panic didn’t last.
Pulwama Attack (2019): Mild Market Dip
Surprisingly, the Pulwama terror attack had a very small effect on the market. The Sensex dipped just 0.2% the next day. Since there was no immediate retaliation, investors waited for the government’s response.
Uri Surgical Strikes (2016): Initial Panic, Then Calm
The Uri strike caused a larger panic. The Sensex fell over 400 points and the Nifty by 156 points. But, just a few days later, both markets recovered, showing investor confidence in India’s economic stability.
Kargil War (1999): Markets Surged Despite Conflict
The 1999 Kargil conflict brought unexpected results. Even though it was a long war, the Sensex jumped by 1,115 points (33%) and Nifty rose by 319 points. Strong monsoons, reforms, and political clarity helped drive this rally.
Why Markets Stay Strong Despite Tensions
V K Vijayakumar, Chief Investment Strategist at Geojit, explained that Operation Sindoor was targeted and not meant to escalate conflict. This limited its effect on markets.
Also, Foreign Institutional Investors (FIIs) have been buying heavily, with ₹43,940 crore invested in the past 14 days. They are betting on India’s growth while economies like the US and China slow down.
He added that FIIs prefer largecap stocks over mid and smallcaps, which are considered overvalued right now.
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