How wars shape Sensex amid global conflicts and market trends

By: Mangalam Maloo

In light of the tragic events in Israel and their near-term ramifications, one realises that wars bring forth immense uncertainty and suffering.

Yet, when it comes to the world of stock markets, a paradox emerges. Investment strategies often remain surprisingly consistent even during these tumultuous periods.

Here’s a glimpse into the curious dance between war and the stock markets, particularly focusing on the impact of major conflicts on the Indian stock market, Sensex:

Gulf War 1

Aug 1990-Feb 1991

Sensex +15% in that period

Kargil War

May-Jul 1999

Sensex +37% in that period

US-Afghanistan war post 9/11

Sep-Dec 2001

Sensex +18.5% in that period

US-Iraq War

Mar-Apr 2003

Sensex -7% in that period

Arab Spring

2011-2013

Sensex 11% in that period

Russian Invasion of Ukraine

Feb 2022-Ongoing

Sensex +21% in that period

Despite war’s somber nature, stock markets, like Sensex, follow an enigmatic path. Investors need vigilance, adaptability, and portfolio diversification to navigate global conflicts.