INDIA-PAKISTAN CEASEFIRE SPURS STOCK MARKET RALLY

Following a reduction in the possibility of a major conflict between India and Pakistan, the Indian stock market has also breathed a sigh of relief.

- Vimal Kothari

In the previous article, it was predicted that after the ceasefire announcement between the two countries, the markets would open strongly on Monday — a forecast that turned out to be accurate.

The expectation that the Indian stock markets would regain momentum following the easing of India-Pakistan tensions was also proven right last week.

The nature of the stock market is such that it always reacts to sharp rallies or downturns. Last week’s sharp recovery was met with profit booking by institutional investors, though this situation is considered temporary.