look news india
When there is a conflict going on between Iran and Israel, if we talk about past conflicts, there is evidence that the stock market has fallen drastically due to the fear of war.
Again the market is seeing a rise, it seems that the situation will gradually improve. The Kargil war is an exception among these conflicts. For example, Nifty fell 13 percent due to fear of India-Pakistan Kargil war. When the Kargil war was going on, Nifty rose by 41 percent, breaking all the equations, and even after the Kargil war, the rise in Nifty continued. War in any corner of the world is not a good or welcome thing for human society, but the trick of finding opportunity out of adversity in life testifies to humanity. It is generally seen that when a war breaks out between any country in the world, it has a negative impact on the global stock markets and there is a huge fall in the shares. Since the stock market historically crashes, such a situation is an opportunity for investors to buy the stocks of their choice. Because, at such times the share price falls significantly. Investors make new entries into selected stocks based on factors such as the local impact of a war and how long that war is likely to last.
Global markets fell sharply in the 1990s during the war between Iraq and Kuwait. At that time the price of crude oil had also doubled. Four months after the war, the markets were again in a state of volatility. There was a huge fall in the market also during the Kargil war between India and Pakistan in 1999. However, realizing that this war or conflict was short in duration, the market recovered and experienced a sharp rally.
Past market data shows that any negative event or uncertainty causes huge volatility in the stock market. Of course, as time passes, as events unfold, it is understood that the situation may gradually improve, so the stock market rally is also historic. Experts say that usually the stock market falls during geopolitical tensions, but later it reaches historical highs.
Nifty-50 performance during Kargil war
The Nifty fell by 13 percent from January 1999 to April 1999 amid fears of an India-Pakistan war.
Between May 3, 1999 and July 26, 1999, i.e. during the Kargil war, Nifty rose by 41 percent.
After the end of Kargil war, i.e. from August 1999 to September 1999, Nifty continued to rise.