ISSUE NO: 17
Soon after the news came out, both
Nifty and Sensex fell down by
around 2%. Sensex fell by 465
points and Nifty by 153 points.
INR also fell down by 0.6% and
weakened against dollar. Only 1
out of every 5 stocks was
increasing on BSE. Some losing
stocks were Adani Ports, Sun
Pharma and ICICI Bank with
decreasing around 4-5 percentage.
The small-cap and mid-cap indices
fell around 4 to 5%. But this was
all short lived. On the very same
day newly launched IPO of ICICI
Prudential Life Insurance had to
suffer around 11% price fall.
Except stock market, there was
extremely marginal impact on
India’s trade and economy.
Finance minister Arun Jaitley
showed confidence in economy
and said any recent tensions due to
surgical strike will not last for long
time and there will be extremely
marginal effect on economy in
future.
Long Term Impact
There can be three possibilities
SEP-OCT
3) Growth.
If investors see that India is not
safe to invest money then they
might pull out money and it will
lead to decline. But if we see the
past trends, the probability of this
to happen is very less as India
always remained strong after such
issues. Market will not react if
traders and investor feels that there
will be no impact of surgical strike.
And on the other side some fund
managers see the immediate
decline as an opportunity. They
start buying at low prices and from
certain level price start raising
again which result in growth. As
far as India is concerned apart
from one major decline market has
come to stability and behaving
normally.
So there will be short term and
long term impact for this kind of
situation. Sometimes market grows
and sometimes it decline. It all
depends on how much traders and
investors show confidence in the
market and government also play
an important role in this.
1) Decline
2) Stable
- By Hitesh Jain
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