The stock markets did not show the impact of India’s action on terrorist bases in Pakistan. At 2:44 pm, the Sensex climbed 100 points to 80,740 points. The Nifty also had a gain of 40 points. Even the volatility index, which indicated the direction of the stock market, was showing a decline. The market increases when it falls and the market declines when it climbs. However, there is an atmosphere of fear among investors. They feel that if Pakistan retaliates, the war between the two countries can erupt.
The question is, what should investors do in such an environment? Experts say that investors do not need to panic. Short term ups and downs in markets. However, the market’s picture looks better in the medium and long periods. Mani Mantra founder Viral Bhatt said that history is a witness to the fact that after such incidents, the Indian market gets recovery soon.
The market declined after the 1999 Kargil war and then the Balakot attack in 2019. However, within a few weeks, the market again went on the path of speed. Experts say that such incidents rarely affect the market in the long term. Bhatt said, “Investors should not come to the emotion. The opportunity should be used to review their asset allocation. They should keep a long -term financial goal in mind while maintaining a focus on diversification.”
Kotak Mutual Fund has said that the action of the government seems to have no possibility of war. But, even if the war arises between the two countries, it will not have much impact on the market. India has faced four major war since 1950. We have last seen Kargil’s fight in 1999. Then after the initial tremors, there was a great boom in the Indian stock markets. Goltellar founder Vivek Banka said that if the war in the two countries completely provokes, then there may be concern.
Kotak Mutual Fund has said in its report that it is difficult to say anything about the market direction. However, investors should continue their long -term investment without paying more attention to the news. This will not affect the target of wealth creation in the long term. As far as India’s economy is concerned, there is no concern about it. Harsh Chetanwala, co-founder of Maywentgoth, said that if the target of an investor is six months or a year away, then he should slowly start withdrawing his money.