War and markets: Lessons for investors from past conflicts

THE MARKETS STABILISED after initial nervousness and apprehension about the Operation Sindoor and its impact.

- SUMANA SARKAR New Delhi, May 7

According to a report by Kotak Mutual Fund, these conflicts have rarely derailed the long-term India story and have led to only short-term swings. Investors need to stay invested for long-term wealth creation. The report specifically advises investors to refrain from panic selling and stopping SIPs.

The Kotak report stated that, "Government action suggests there is low possibility of a war. However, in case of a full-blown war, we must note that since 1950, India has seen four major wars. In the last major conflict (Kargil-1999), the equity markets have remained robust after an initial panic."