Minor Stock Market Slumps Likely

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.

- CORRESPONDENT

The report highlighted that, except during the Parliament attack in 2001, Indian equities did not fall more than 2 per cent during such high-risk events.

It said "Except during the Parliament attack in 2001, Indian equity markets did not correct more than 2% during periods of high tension with Pakistan".

The only significant drop occurred after the Parliament attack in 2001-02, when the market corrected sharply. However, the report points out that this fall was likely influenced more by global factors, especially the 30 per cent decline in the U.S. S&P 500 index during the same period, rather than by the India-Pakistan conflict alone.