Operation Sindoor: Limited Impact On D-st? Stocks & Sectors In Focus As India Strikes Pak Terror Bases

As a retaliation to nan panic onslaught successful Pahalgam successful April, India has conducted a subject precision strike, named ‘Operation Sindoor’ and targeted violent camps successful Pakistan arsenic good arsenic Pakistan-occupied-Kashmir successful nan early greeting connected Wednesday, May 7. Amid nan emergence successful volatility, Indian equity markets person remained resilient truthful far.

After nan contiguous negotiated consequence to nan panic attacks connected April 22, 2025, Indian subject took action aft respective days of readying and brainstorming. Global organisations including nan UN and awesome economies for illustration nan US, UK and others condemned nan attacks.

Since nan 1990s, respective high-stake India–Pakistan episodes including Kargil war, Parliament attacks, Uri and Pulwama- person tested nan nerves of markets. A glimpse astatine history offers position for nan India banal markets.

The Sensex has consistently demonstrated a singular immunity to sabre-rattling, said home brokerage patient Anand Rathi Shares & Stock Brokers, which does not expect a correction beyond 5-10 per cent. "Market corrections, if any, person been modest, short-lived and mostly sentiment-driven. Fundamentals person prevailed," it said analyzing information from 11 instances from nan past.

The brokerage noted nan Indian markets person remained resilient because nan probability of full-scale conflict remains low, investors adept astatine distinguishing sound and fundamentals and nan marketplace rebounded swiftly from nan situation jitters. "While short-term volatility is ever a possibility, we do not expect a structural effect connected Indian equities," said nan brokerage firm.

The caller panic onslaught successful Jammu and Kashmir is apt to negatively effect nan region’s tourism-driven economy, pinch travel cancellations already underway. However, nan nonstop effect connected listed companies appears limited. Similarly, nan effect connected defence-related companies is apt to beryllium positive, it said.

Trip cancellation station these panic attacks are not overmuch antagonistic for hotels and aviation companies for illustration Indian Hotels Company and InterGlobe Aviation (IndiGo). On nan look of it, defence level companies for illustration Bharat Forge and defence consumable companies for illustration Solar Industries and Bharat Dynamics whitethorn beryllium benefitted. Anand Rathi has a target value of Rs 800 connected Indian Hotels, while others stay unrated.

Since nan 1990s, full-scale India–Pakistan wars were deterred contempt repeated provocation, chiefly owed to world diplomacy, India’s atomic risks, economical self-interest, nationalist mood, and evolved strategical doctrines focused connected controlled escalation alternatively than an uncontrolled, afloat fledged war, noted Anand Rathi.

"Post nan Parliament Attack successful 2001, India’s consequence to a flare-up successful tensions pinch Pakistan ne'er escalated beyond precocious subject alert, crossborder tactical strikes and constricted air/artillery action. Given nan humanities precedence and India’s anti-war stance, a full-scale warfare successful consequence to nan Pahalgam Terrorist onslaught looks unlikely," it said.

The brokerage noted that Sensex has seen a highest correction of 13.5 per cent during 2001 Parliament attacks, if we exclude 2020-21 ceasefire usurpation during nan covid-19 pandemic periods. Following that, Sensex dropped 9.5 per cent during Kaluchak Massacre, 8.4 per cent during Pathankot attacks and 6.3 per cent connected Mumbai Train blasts.

Of nan 11 episodes successful nan past, 2 resulted successful a war-like situation- Kargil War and nan Parliament Attack. There was nary marketplace correction during Kargil, and moreover during nan Parliament Attack, India outperformed S&P 500 by a ample margin. FPI flows were affirmative during some episodes.

"The mean (mean) Sensex correction astatine lowest points during Indo-Pak tensions was 7.5 per cent and nan median, 3.5 per cent. In comparative terms, some mean and median were positive, indicating outperformance by India during these periods. FPI flows, also, for nan balance, remained affirmative and turned substantially antagonistic during only 2 of nan 10 episodes," it said.