Operation Sindoor
India has launched its deepest strikes in Pakistan since 1971 under ‘Operation Sindoor’, claiming it was a precise, restrained response targeting only known terror camps without hitting civilian or military sites. India emphasized the operation was non-escalatory. Pakistan, however, disputes these claims, suggesting the strikes may have impacted beyond the stated targets, escalating bilateral tensions.
Analysts Views
Stock market analysts aren’t expecting a full-scale war between India and Pakistan and haven’t changed their investment plans, Further, Bernstein’s Venugopal Garre said markets usually fall during such events but have always bounced back later. He believes buying stocks during any dip would be the best strategy if markets fall.
Despite the political tension, India’s stock market has stayed strong because of both foreign and domestic inflows. Nilesh Shah of Kotak Mahindra said it was surprising to see foreign investors buying heavily during a conflict with Pakistan, but their support, along with local investments, has kept the market rising.
Also read: India-Pakistan War: How to Hedge Your Portfolio with Options During War Uncertainty
Where to invest
Geopolitical tensions-such as the current India-Pakistan conflict-create heightened uncertainty, market volatility, and increased risk for traditional investments. In such environments, alternative assets become especially attractive for diversification and wealth preservation. Here’s a structured approach to investing in alternatives during periods of war and global instability:
Gold and Precious Metals: Gold is a traditional safe-haven investment during geopolitical instability, preserving value over time. You can invest in physical gold, ETFs, or gold-backed securities for protection.
Commodities: Commodities like oil, natural gas, or agricultural products can hedge against inflation and geopolitical risks. These assets often perform differently from traditional markets, offering diversification during market uncertainty.
Bonds: Government bonds, particularly from stable countries, are low-risk investments, offering fixed interest payments and safety. Short-term bonds help avoid long-term market volatility, providing predictable returns during turmoil.
Cryptocurrencies: Cryptocurrencies like Bitcoin are seen as decentralized assets. While volatile, they offer a hedge against currency devaluation and economic instability, though they carry significant risk during uncertain times.
Hedge Funds: Hedge funds use various strategies, such as short-selling, derivatives, and many others, to manage risk and generate returns in volatile markets. They aim to provide positive returns regardless of market direction.
Liquidity Management: Maintain a portion of your portfolio in liquid assets to meet unforeseen needs and seize undervalued opportunities during market corrections.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
