'Operation Sindoor' brings uncertainty to Indian Stock Market, UK-India FTA offers promising avenue

The 'Operation Sindoor' has had its toll on the Indian capital markets.

- RITWIK MUKHERJEE

The markets have reacted strongly and sharply. And understandably so. The most obvious has happened.

As obvious, the attack gives a boost to the Indian defense companies such Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Bharat Dynamics—showed an increase. And it does not require any rocket science to understand this. Because conjecture during military operations holds that higher government spending on defence is reflected in the economy.

FII plays a vital role in Indian Market and as we know these players usually pull out if the region experiences some pressure or unrest. Due to this, a short-term selling pressure can be seen on the Indian equities, said Ankur Sharma, Market Analyst, VT Markets.