Operation Sindoor & Your Investments: Should You Panic or Stay Calm?
By Raghav | WealthCare Vest
Caring for your wealth, strengthening your investment
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What Happened Recently?
On the night of May 6, 2025, India launched Operation Sindoor to retaliate against the Pahalgam terror attack. The military operation targeted 9 camps in Pakistan and Pakistan-Occupied Kashmir (POK).
Source: PIB Press Release – https://pib.gov.in/PressReleseDetailm.aspx?PRID=2127370®=3&lang=1
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How Have Markets Reacted in the Past?
Let’s look at what history says about wars and the Indian stock market (Nifty 50):
Kargil War (1999):
Initial drop of -8.3%, but Nifty gained 36.6% during the war and 29.4% in the following year.
Uri Surgical Strike (2016):
Minor fluctuations, followed by an 11.3% rise in a year.
Balakot Airstrike (2019):
Slight dip, but markets rose 8.9% after one year.
Key Insight:
Markets tend to recover well after initial panic during geopolitical tensions.
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India’s Economic Strength During Wars
Despite wars, India’s economy has shown resilience.
Example from the Kargil War (FY1999-FY2000):
GDP Growth: 6.18% → 8.85%
Inflation (WPI): 5.9% → 3.3%
Fiscal Deficit: Stable around 9%
Other wars in 1962, 1965, and 1971 show similar long-term stability.
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What Should You Do as an Investor?
SIP (Systematic Investment Plan):
Do: Keep investing, top-up if possible
Don’t: Stop or pause your SIP
Lump Sum Investments:
Do: Invest in a staggered manner
Don’t: Panic sell
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What Might Happen Next?
Prolonged Conflict:
Economic impact: Higher inflation, fiscal deficit
Market: Short-term correction possible
No Conflict or Limited Conflict:
Economic impact: Minimal
Market: Likely to stabilize
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Final Thoughts from WealthCare Vest
It’s natural to feel nervous during such times, but don’t let fear drive your financial decisions.
“Stay invested. Stay disciplined. Let time grow your wealth.”
Long-term investors have always come out stronger after such events.
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Need Personal Help with Your Investment Strategy?
We’re here to guide you.
Connect with us: https://linktr.ee/wealthcarevest
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Disclaimer:
Past performance does not guarantee future returns. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully.
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