In an unprecedented air strike across the Line of Control (LoC), the Indian Air Forces bombed terrorist training camps in Balakot on February 26. Sensing a brewing geopolitical tension, the market panicked and witnessed deep cuts through the day. At close, the Sensex fell 239.67 points to 35,973.71, and Nifty was down 44.80 points at 10,835.30.
February 26 “pre-emptive strike” followed the attack on CRPF soldiers in Pulwama of Jammu and Kashmir on February 14. In the suicide bomb attack, 40 soldiers were killed, leaving a nation of 1.3 billion people mourning.
Market’s reaction to the Pulwama attack was also panic-stricken as it shed about 0.2 percent during the trade on February 15. But, the point to note is that the market was already in a downtrend as it had fallen for the previous five sessions as well. And it kept falling till February 19.
However, not all terrorist attacks or military actions lead to losses in equity market. Last two decade’s data suggests many-a-times, the market is unaffected by the news of terrorist attacks or military actions, at least immediately.
However, not all terrorist attacks or military actions lead to losses in equity market. Last two decade’s data suggests many-a-times, the market is unaffected by the news of terrorist attacks or military actions, at least immediately.
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