Geopolitical tensions between India and Pakistan initially rattled tourism stocks, causing dips in aviation, hotels, and travel services due to disrupted travel plans. However, a subsequent ceasefire has shifted market sentiment towards cautious optimism. Experts suggest a selective, long-term approach, focusing on fundamentally strong companies with a robust domestic presence like Indian Hotels and Indigo.
48 of the Nifty 50 stocks were in the green, and 12 of the 13 major sectors posted gains. Broader indices, including small- and mid-cap stocks, jumped around 3% each. This rebound followed a nearly 1.5% drop in the Nifty over the previous three sessions, driven by fears around escalating conflict with Pakistan. The latest round of hostilities—the most serious in nearly 30 years—began on Wednesday when India targeted nine locations in Pakistan it described as “terrorist infrastructure,” in response to an attack in Kashmir that left 26 people dead two weeks earlier.
Global Markets Watch Asian stocks and U.S. equity-index futures advanced, and the dollar strengthened, as China and the U.S. reported “substantial progress” in their trade negotiations, boosting investor appetite for risk. S&P 500 futures rose 1.4% as of 9:51 a.m. Tokyo time Japan’s Topix rose 0.3% Australia’s S&P/ASX 200 rose 0.5% Euro Stoxx 50 futures rose 0.8%