New Delhi, March 2. Despite a barrage of global geopolitical storms over the past 15 years, the Indian stock market has consistently demonstrated remarkable resilience, according to a new report released on Monday.
Axis Asset Management’s analysis reveals a clear pattern: every time tensions escalate worldwide—be it during Operation Sindoor or the 2011 Middle East unrest—domestic indices like the Sensex and Nifty experience sharp dips. Yet, history shows these are temporary setbacks.
The report emphasizes that post-crisis recoveries have been swift and strong. Markets rebound, proving their underlying strength even after major conflicts. Investors who panic-sell during events like the ongoing US-Israel-Iran tensions often regret it later.
‘Geopolitical shocks trigger short-term volatility, but if conflicts remain regional, long-term market weakness doesn’t persist,’ the report notes. Declines are limited and fleeting, while sustained growth is driven by corporate earnings, liquidity, and domestic demand.
Axis Mutual Fund’s Chief Investment Officer, Ashish Gupta, advises long-term investors: ‘Markets may fall, currencies weaken, oil prices spike—but economic fundamentals recover over time. Stick to your investments, diversify wisely, and view dips as buying opportunities.’
Gupta points out that those who fled previous crises missed explosive rallies that followed soon after. This latest US-Israel-Iran flare-up, while serious, is far from unprecedented for Indian markets.
Over 15 years, from regional wars to global uncertainties, India’s equity markets have weathered the storm time and again. The lesson is clear: patience pays dividends.