Equity markets have also shown historically flexibility during such geopolitical episodes. The firm said that only two of the 11 Indo-Pak tension incidents developed in two war-like situations, the firm said.
During the attack of both Kargil and Parliament, the Indian Equity performed better than the S&P 500, and foreign portfolio investment flows were positive. In fact, Anand Rathi stated that the average senses improvement at his lowest points was 7.5%, with only 3.5%average, and on a relative basis, Indian markets beat global peers.
Brokerage does not expect to separate at this time. Anand Rathi said that the comprehensive story is leading India’s domestic macroeconomic power, which is not by the speed of earning, liquidity, policy clarity and macro stability, and its external mistake is not by lines. In most cases, investors appeared to difference between temporary noise and long -term basic things, he said.
However, the impact on the economy of Jammu and Kashmir can be more immediate, Anand Rathi believes. The attack puts a shadow on the tourism sector of the region, with a strong revival post Covid with approximately 21 million tourist arrival in 2023. Given tourism, about 8% contributes to the central region’s GSDP, a wave of travel canceling can damage local journey, hospitality and friendly services.
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