By Admin 
India pak tension impact on stock market: After the killing of 26 tourists on April 22 in Pahalgam, Jammu and Kashmir, the tension between India and Pakistan has increased considerably. This incident has done ghee in the fire amid the sourness in the relationship with the initiative. After this, India took many tough steps including canceling the Indus Water Agreement and reduced the number of diplomats from neighboring countries, on the other hand, Pakistan is also taking retaliation. This tension between the two countries is having a direct impact on the stock markets.
Market experts believe that if the tension continues to increase in this way, then there will be uncertainty in the market and there will be an atmosphere of fear in the interest. It is worth noting that at the rise of seven consecutive days last week, the Indian stock market got a break when this tension between the India and Pakistan increased after the incident of Pahalgam.
Effect of tension on the stock market
Talking about the last week, the BSE Sensex closed at 79212.53 level while the Nifty 50 saw an increase of one percent. The Nifty 50 had climbed about 0.80 per cent to close at 24,039.35. If we believe the report of brokerage firm Anand Rathi, then about twenty four years ago, when Vajpayee had a government at the Center, the Indian Parliament was attacked in 2001. If you leave the situation at that time, the Indian stock market had never seen a decline of more than 2 percent during the stress of India and Pakistan.
However, even at that time there was a greater impact on the market on the market, especially the fall of about 30% in the global factor, especially S&P 500. This report further states that on the basis of historical experiences and valuation of existing global risk, if there is further increase in tension between India and Pakistan, then the Nifty 50 will not see a decline of more than 5 to 10%.
Which shares have more impact
The report of the brokerage firm further states that on an average, you can see a correction of up to 7 percent in the stock market during the average geo-political tension. Significantly, after the attack on tourists in Pahalgam, there has been a tremendous development in the shares of aviation companies and hotels. Many investors are scared that the incident of Pahalgam will have a bad effect on tourism and will affect the business of hotel and aviation companies. This is the reason why these stocks saw vigorous selling.
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