Stock Market Today: Indian Share Bazaar Shows Resilience Amid India-Pakistan Tensions, Says Anand Rathi Report

Indian stock markets have largely remained stable during periods of military or political tension with Pakistan, according to a new analysis by Anand Rathi Research. The report stated that, except during the Parliament attack in 2001, Indian equities did not fall more than 2 per cent during such high-risk events. “Except during the Parliament attack in 2001, Indian equity markets did not correct more than 2% during periods of high tension with Pakistan,” the report said. The Parliament attack period saw a sharper correction, but Anand Rathi attributed the fall primarily to a global downturn, especially the 30 per cent decline in the U.S. S&P 500 index at the same time.

Minor Corrections During Past Crises

Anand Rathi Research highlighted that Indian stock markets corrected, on average, around 7 per cent during major geopolitical events, with a median correction of about 3 per cent. Even during heightened escalation, the report indicated that the Nifty 50 index is unlikely to fall more than 5-10 per cent, based on past data and the current global risk environment. The report arrives at a time of heightened India-Pakistan tensions after the Pahalgam terrorist attack, which killed 26 civilians.

Analysis Covers Major Geopolitical Events

The research examined four major India-Pakistan confrontations since the 1999 Kargil War. It also reviewed 19 other wars or war-like situations involving G20 nations over the past 25 years. For each event, Anand Rathi tracked the stock market performance from the day before the conflict began. In longer conflicts exceeding a year, the study considered the lowest point reached within the first six months. For shorter conflicts, the lowest point during the event was analyzed.

Investment Strategy Remains Unchanged

For investors currently following the 65:35:20 strategy—allocating 65 per cent to equities, 35 per cent to debt, and 20 per cent to alternatives—the report recommended maintaining the current allocation. “Investors who have any equity gap in the portfolio should invest now thereby getting aligned to the strategic allocation of 65:35:20,” Anand Rathi Research advised.

The report reassured investors that historical patterns suggest market resilience even during significant political and military conflicts, encouraging strategic consistency rather than reactive decisions.

(With Inputs From ANI)

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