Markets volatile but no crash on D-Street amid Indo-Pak tensions. 3 things to know
Investors were spooked by the conflict, but many also took comfort in India's conventional military strength. 'Under normal circumstances, the market would have suffered deep cuts,' said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.'But India's superiority in conventional warfare has limited fears of a prolonged conflict.'In other words, while markets hate uncertainty, they also respond to perceived control—and right now, investors seem to think India has the upper hand.STRONG ECONOMIC INDICATORSEven as the headlines rattled nerves, the numbers told a different story. India's economy is still growing strong, interest rates are trending lower, and inflation seems to be under control. 'The market is inherently resilient,' said Vijayakumar, pointing to a global backdrop that's increasingly tilting in India's favour—especially with the US and Chinese economies showing signs of cooling. All of this has helped cushion the blow.FII INFLOWS STILL STRONGadvertisementPerhaps the biggest show of confidence has come from foreign investors. Over the past sixteen trading sessions, they've continued to pump money into Indian equities. That kind of steady inflow usually signals a deeper trust in the country's economic story—and it's a key reason the markets didn't go into free fall.'Investors should not panic and exit from the market now,' Vijayakumar added. 'Remain invested, monitor developments and wait for the dust to settle.'Of course, the volatility isn't over yet. The India VIX jumped more than 5% early on, a clear sign that the market remains on edge. And technically speaking, there's more turbulence ahead.Anand James of Geojit pointed out that the Nifty has broken below a key moving average, hinting at possible dips towards 23,460. But he also sees value buying kicking in if the index slips near 23,550—a possible silver lining for those looking to enter or add on weakness.For now, the takeaway is simple. The mood remains tense, but the situation on Dalal Street has not spiralled out of control. Investors are watching with caution, but they're not running away.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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