How 'Operation Sindoor' took the wind out of stock market?
Operation Sindoor, launched by the indian Army against Pakistani terrorists, has had a direct impact on the stock market. Due to this action, there is chaos in Pakistan's stock market and Karachi Stock Index has seen a decline of about 6 percent. During the initial trading, KSE-100 fell by 6272 points and came down to 107,296.64. A day earlier, Karachi Stock Index closed at 113,568.51 on Tuesday.
On the other hand, indian stock market opened in the red zone and recovered immediately on wednesday morning. In such a situation, the question arises that how did Operation Sindoor salute the indian market on one hand, while on the other hand, why did the Pakistani stock market bleed like this?
How did the indian market stand strong?
Actually, market experts believe that foreign investors are standing firmly with the indian market and are expressing full confidence. Dr. Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, says that the most important thing is that this entire operation was not provocative. In the last 14 sessions, foreign institutional investors have invested Rs 43,940 crore in indian equity. Apart from geopolitical tensions, they have expressed full confidence in the indian stock market. Along with this, India's strong economy and weak economic growth of china and America have also worked in its favor. Foreign investors expressed their confidence in the stability of the indian market and the strengthening currency. However, while on one hand the market has bounced back, on the other hand, investors are also worried about trade tensions and the US Federal Reserve's policy coming today.