How has Sensex performed in previous India-Pakistan clashes?

Geopolitical tensions between India and Pakistan have intensified in the last couple of days, jolting investor sentiment. That said, your portfolio should be the last thing to worry about now. To put your anxiety to rest, we revisited the major instances when our armed forces were called upon to confront Pakistan and examined how the stock market reacted, not just in the short term but over longer investment horizons. Here's what we found: Market returns during major India-Pakistan clashes Sensex stayed resilient, at least in the long run Events Date Description Return during event One-year return from the start date Five-year return from the start date Kargil War May 1999 - Jul 1999 Pakistan intruded; India reclaimed territory. 36.9% 28.3% 10.6% Operation Parakram (post Parliament attack) Dec 2001 - Oct 2002 India mobilized troops post-attack on parliament. -12.7% -1.3% 31.2% Samjhauta Express Bombings Feb/2007 Train bombing killed 68 civilians. 2.8%

This article was originally published on May 09, 2025.