Indian Stock Market During War

Historically, the Indian stock market has shown resilience during geopolitical conflicts, including wars. While short-term volatility is common, long-term trends often stabilize as investors adjust to the situation.

Stock Market Behavior During Wars

1999 Kargil War – The Sensex surged 37% during the conflict, outperforming global indices. Investors focused on large-cap stocks with strong fundamentals.
2001 Parliament Attack – The market saw a 14% decline, but this was largely influenced by global factors, including a downturn in the S&P 500.
2016 Uri Attack & Surgical Strikes – The market corrected by 2.1%, but quickly rebounded.
2019 Pulwama Attack & Balakot Airstrike – The Nifty 50 fell 1.8%, but stabilized within weeks.
Recent India-Pakistan Tensions (2025) – Despite uncertainty, the Sensex and Nifty 50 gained nearly 1%, reflecting investor confidence in India’s economic stability.

Key Takeaways for Investors

Short-term volatility is expected, but long-term resilience is common.
Defense, infrastructure, and large-cap stocks tend to perform well.
Market corrections during conflicts have historically averaged 7%, with a median correction of 3%.
Strategic investors often use dips as buying opportunities.