The Indian equity market seems to be holding its ground fairly well amid the rising India-Pakistan border tensions. The NSE Nifty 50 index has gained 1 per cent since the terror strike in Kashmir’s Pahalgam on April 22, which left 26 civilians dead. Even on Wednesday May 7, post India’s ‘Operation Sindoor’ on Pakistan, and Pakistan-occupied-Kashmir (PoK) terror sites, the Nifty ended the day on a positive note, with mild gains. Historical data shows that the market has delivered steady gains in the one-month period post past similar India-Pakistan conflicts. The NSE Nifty for instance has delivered an average gain of 4.7 per cent in the one-month period after past five such India-Pakistan clashes namely – the 1999 Kargil war, 2001 Parliament attack, 2008 Mumbai 26/11 terror strike, Uri Attack in 2016 and Pulwama & Balakot strikes in 2019.
According to ACE Equity data, there are a total 262 common stocks that were traded on the NSE during all 5 India-Pakistan conflicts. Here’s an analysis on these 262 commonly traded stocks on the NSE during the last 5 India-Pakistan conflicts: Data shows that 26.3 per cent of the commonly traded stocks in these periods, i.e. 69 out of the 262 stocks logged an average gain of over 10 per cent in the one month period post start of India-Pakistan conflicts. Out of which, 14 stocks had registered an average gain in excess of 20 per cent.
Here’s a list of top gainers & losers during the past India-Pakistan conflicts –
Kesoram Industries logged an average gain of 33.5 per cent, and was the standout performer among the 262 stocks. The stock was closely followed by Hindustan Motors, which delivered an average gain of 31 per cent in the one-month period post the last 5 India-Pakistan clashes. That apart, a total of 12 stocks investments made investors’ richer by 20 – 25 per cent. Prominent names among these were – Trent, Raymond, BPCL, Ashok Leyland, Gujarat Mineral Development (GMDC) and Century Enka.
Among the balance stocks that rose more than 10 per cent in similar one-month periods – well-known stocks were – Rolta India, ACC, Bombay Dyeing, SBI, Tata Steel, Bharat Electronics, Kotak Mahindra Bank, Grasim Industries, CG Power and Industries, Balrampur Chini, India Cements, ICICI Bank, Tata Motors, HPCL, Container Corporation, Shree Cement, Vedanta, Aurobindo Pharma, Indian Oil and Reliance Industries.
On the flip side, mere 8 out of the 262 commonly traded stocks delivered an average negative return in excess of 5 per cent. Ashima down 8.5 per cent was the consistent loser. Tamilnadu Telecommunications, Natco Pharma, ITI, Kothari Products, Onward Technologies, Tata Elxsi and Hexaware Technologies were the other key laggards.
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