By Admin 
Share Market: Pakistan and Pakistan administered Kashmir was attacked by the Indian Army on Tuesday and Wednesday, on the night of the Indian Army and destroyed nine terrorist hideouts. Due to this military action of India, heavy firing is being done by Pakistan on the LOC.
Will foreign investors pull their hands back from Indian markets due to increasing tension between the two countries? Quoting all the experts, Reuters have informed in their report that the LOC is unlikely to have any significant impact on the sentiments of foreign investors towards Indian markets.
Investors are confident of this
India’s economy, which has crossed the $ 4 trillion dollars, has a direct trade with Pakistan. After the terrorist attack in Pahalgam, business between the two countries has stopped. As a result, India’s missile attacks across the border were limited to domestic equity, currencies or bonds. Investors believe that there is less possibility of fierce battle between the two countries.
Conflict has no permanent impact on India
According to the report of India Today, Ajay Marwah, head of fixed income in Nuwama Group, says that if the situation improves soon, then investment will not be damaged. City analysts have mentioned in a research note that if we look at the history of the struggle between India and Pakistan, it has not shown any permanent impact on the markets of India.
For example, the rupee remained stable after the violence in Pulwama-Balakot of 2019 and a temporary growth of 15 basis points was observed before the bond yield declined. A similar pattern was seen in 2020 during the Galwan Valley Struggle with China, when the rupee was initially weakened by 1 percent, but later recovered again.
Why do investors trust in India unwavering?
Investors have increased confidence in Indian markets after US President Donald Trump’s discounted tariff on India and then temporary ban on it for 90 days. It is also to be noted that India’s economy is moving fast. The Reserve Bank of India has estimated GDP growth of 6.5 percent for the current financial year.
From the beginning of April, when the US announced a new tariff, the Nifty 50 index has booured a 4.6 percent. According to the IMF data, India will become the fourth largest economy, overtaking Japan by 2025, which is currently at number five after America, China, Germany and Japan.
In addition, the trade agreement between India and Britain was finalized earlier this week. There is also a rapid negotiation on the bilateral agreement with the US. These are many big reasons due to which investors confidence in Indian markets is unwavering.
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