Nifty 50 vs. Geopolitical Tensions: Historical Trends & Market Resilience
- Swapnil Shah
- May 9
- 1 min read
Updated: May 9
From Kargil to Pulwama, discover how the Nifty 50 reacted to major geopolitical events. Analyze market trends through real data and graphs that reveal the index’s long-term resilience.
Kargil War (May–July 1999): Sharp dip early in the conflict, followed by a strong recovery by Vijay Diwas, Up 37%
9/11 WTC Attack (Sep–Dec 2001): Initial gap‐down 4%, then gradual rebound over the next three months.
Parliament Attack (Dec 2001–Mar 2002): Mild impact with steady gains in the quarter following the attack.
Hotel Taj Attack (Nov 2008–Dec 2008): Market closed for one day on 27th Nov 2008, then ranged flat, and climbed significantly by month-end.
Pulwama & Balakot (Feb 2019): Modest drop on Pulwama attack day by Pakistan, followed by a slight uptick after the Balakot air strike by India.
What do we conclude?
Despite initial volatility or knee-jerk reactions to geopolitical tensions, the Nifty 50 index has consistently shown resilience, often closing higher in the weeks or months following such events.
How do you usually react to geopolitical tensions affecting the stock market?
1️⃣ I sell immediately to avoid losses
2️⃣ I stay invested and wait it out
3️⃣ I buy the dip for long-term gains
4️⃣ I don't follow market news that closely
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