New Delhi, March 2 (IANS). Despite major struggles globally, the Indian stock market has shown strength in the last 15 years. This was said in a report on Monday.
According to an Axis Asset Management report, domestic stock market indices have witnessed sharp decline whenever geopolitical tensions have increased – be it during Operation Sindoor or the unrest in the Middle East in 2011.
The report said that even though the Indian stock market may have fallen significantly during such events, after every major global conflict or war, the market has bounced back and proved its strength.
According to the report, investors who panic sell their shares during conflicts like the US-Israel-Iran tension should understand how the Indian stock market has historically performed during times of major geopolitical crises.
Negative trends have been observed in global stock markets after missile attacks amid the US-Israel-Iran war.
This trend has been repeated several times in the last 15 years. According to the report, wars and geopolitical conflicts usually bring short-term fluctuations, but if conflicts are limited to the regional level, there is no prolonged market weakness.
The report said that it is generally observed that the market decline due to conflict is limited and temporary, while the long-term market direction is determined by companies’ earnings growth, liquidity and domestic demand.
The report also said that the US-Israel-Iran conflict is a serious geopolitical event, but it is not a new or unprecedented situation for Indian investors.
Ashish Gupta, Chief Investment Officer, Axis Mutual Fund, said, “Every major crisis in the last 15 years has tested investor sentiment and almost every time the Indian stock market has shown strength. Markets may fall, currency may weaken and oil prices may rise, but over time economic fundamentals become stronger. The most reliable strategy for long-term investors remains the same – stay invested, diversify wisely and take advantage of the opportunity to grow your investments in times of downturn.” Understand.”
He also said that investors who panicked and exited the market during earlier conflicts often missed the subsequent boom, which was often seen in a short period of time.
–IANS
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