Stock Market Crash: After the terrorist attack on tourists in Pahalgam, Jammu and Kashmir, the increasing tension between India and Pakistan was also seen on the domestic stock markets. After the central government took steps like cancelling the Shimla Agreement, panic is being seen among the investors. The BSE Sensex slipped more than 1000 points intraday on Friday. While Nifty-50 slipped below 24 thousand today. Analysts believe that tensions between India and Pakistan may increase after the Pulwama attack. But at this time, there is no possibility of a full-fledged war between the two countries.
According to UR Bhat, co-founder and director of Alphaniti Fintech, there is a bit of panic in the market after the incident in Pahalgam. He said that the markets had recently rebounded after the fall due to fears of US tariffs. But now investors are booking profits.
Bhat said, “Investors are worried due to the escalating geopolitical situation with Pakistan. Especially after the Pahalgam attack. Markets are anticipating that tensions between India and Pakistan will increase and there is no doubt about it. Now it remains to be seen how and how quickly India will respond to this development. However, no one can predict this. That is why investors are keeping their positions light.”
Terrorists killed 26 Indians in the Pahalgam attack. India has taken several retaliatory measures targeting Pakistan’s diplomatic and strategic interests.
Sensex fell 1000 points
At the same time, the BSE Sensex fell more than 1000 points to 78,605.81 on Friday. It fell 7,236 points to 71,425 from the level of 78,017.19 on March 25, 2025, showing a decline of 8.4%. The markets rose after US President Donald Trump extended the tariff period by 90 days, and the Sensex rose 12.4% to 80,254.55.
What strategy should investors adopt amid India-Pakistan tension
G Chokalingam, founder and head of Equinomics Research, said recent developments between India and Pakistan will keep markets volatile and could lead to further downside risks.
Chokalingam said, “Investors should remain cautious and keep an eye on developments. But there is no need to panic at this time. A full-blown war is unlikely. But tensions between India and Pakistan will increase. This is what the markets believe. Markets will be able to handle this situation, and as seen before, they will eventually recover. As an investment strategy, investors should buy during dips with a long-term view. I am positive on the banking sector.”