Breaking News: India executed a targeted strike against 9 terrorist bases in Pakistan and POK in the early hours today. As the market reacts, here’s a powerful reminder for investors:
1. Geopolitical Events and Market Reactions: A Historical Perspective
• Kargil War (1999): Nifty initially dropped -8.3% but rebounded with a 36.6% gain within a year.
• Uri Surgical Strike (2016): Markets fell -0.3% but recovered to post 11.3% gains after a year.
• Balakot Airstrike (2019): Despite a -0.4% dip, markets bounced back with 8.9% annual returns.
Taresh’s Key Takeaway: Short-term swings are unsettling, but historical data shows that Indian markets recover strongly post-conflicts. Stay focused on the long-term.
2. Current Market Update: Stay Calm, Stay Focused
I just did analyse :
• Sensex (May 6, 2025): Closed at 80,641.07, down 155.77 points (-0.19%)
• Sensex (May 7, 2025 – 125 PM): Currently at 80,557 down 74 points (-0.09%)
While the immediate market reaction reflects short-term uncertainty, it is my firm belief that it is crucial to remember that India’s long-term growth trajectory remains intact. Economic fundamentals and corporate earnings drive the markets, not short-term noise.
Also read: How to Manage the 6 kind of Behavioural and Emotional Biases in Your Journey to Richness
3. Investor Action Plan: What to Do Now?
Don’t Panic: Historical data reveals that market dips during conflicts are temporary. Avoid knee-jerk reactions.
Review Asset Allocation: Consider staggered investments or SIP top-ups to capitalize on market dips.
Stay Focused on Fundamentals: Watch economic indicators like GDP, inflation, and fiscal deficit, not just daily market movements.
Consult Your Financial Advisor: Personalized guidance ensures that your financial plan remains aligned with long-term goals amidst market volatility.
Taresh Final Insight
The Indian market’s resilience through previous conflicts serves as a powerful reminder — Stay invested, stay patient, and stay focused. Wealth creation is a marathon, not a sprint.
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The author of this article, Taresh Bhatia, is a Certified Financial Planner® and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com
He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This article serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose article only and not any advice whatsoever.
©️2025: All Rights Reserved. Taresh Bhatia. Certified Financial Planner®
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