Operation Sindoor impact: Market reactions to Indo-Pak military tensions have historically been measured. During past confrontations between the two nations since 1999, the Nifty 50 has typically experienced modest declines of approximately 5%, followed by robust recoveries yielding double-digit gains within six months. Despite border tensions, financial markets have maintained their focus on core economic indicators. According to an ET analysis, this pattern is being observed again following India’s coordinated precision strikes against nine terrorist locations in Pakistan and Pakistan-occupied Kashmir (PoK), responding to the Pahalgam terror incident that resulted in 26 civilian casualties. Operation Sindoor has had minimal impact on Indian stock markets. The Nifty and Sensex recovered quickly after a brief initial decline, remaining focused on capital flows and economic fundamentals.
Analysis of major conflicts – the Kargil War (1999), Parliament attack (2001), the 26/11 Mumbai terror strikes (2008), Uri surgical strikes (2016) and Balakot airstrikes (2019) – shows the Nifty’s average maximum decline was merely 5.27%, falling short of correction levels.
Data from Bajaj Broking quoted by ET indicates positive six-month returns in four out of five instances, with particularly strong recoveries exceeding 35% following the 1999 and 2008 events.
Markets tend to remain stable during geopolitical tensions because investors typically focus on future prospects. Unless conflicts intensify into full-scale warfare or affect fundamental economic indicators such as trade, inflation, currency or capital movements, markets generally disregard temporary disturbances.
“Even in the event of a substantial escalation, we believe the Nifty 50 is unlikely to correct more than 5–10%,” said Anand Rathi, highlighting how current global risk appetite remains resilient. “Investors who have any equity gap in the portfolio should invest now, aligning to the 65:35:20 strategic allocation.”
Also Read | Real economic blow to Pakistan! India chokes $500 million Pakistani goods entering it via third countries Historically, the Parliament attack in 2001 stands out as the most significant anomaly, carrying substantial international implications. It occurred shortly after the September 11 attacks, when global markets were uncertain and risk-averse behaviour prevailed across asset categories. The situation extended beyond South Asia. The 2008 Mumbai attacks coincided with the global financial crisis, creating a pessimistic market environment, the report said.
However, during incidents like Kargil (1999) and Balakot (2019), despite heightened tensions, these situations remained contained. Markets viewed these events primarily as political or strategic developments rather than economic disruptions.
Market Resilience in Current Times
“What stands out in Operation Sindoor is its focused and non-escalatory nature,” noted Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit. “The market had already discounted the Indian strike. What’s driving resilience is the Rs 43,940 crore in FII flows over 14 days. That’s where the real support lies.”
The current market structure shows notable differences. Individual investors demonstrate increased sophistication, whilst domestic institutions maintain substantial cash reserves. Foreign Institutional Investors (FIIs), traditionally cautious during border tensions, now show preference for Indian large-cap companies, anticipating growth opportunities in a stagnant global environment.
“India’s macroeconomic fundamentals remain robust,” observed Devarsh Vakil, Head of Prime Research at HDFC Securities. “Cash-rich mutual funds and steady FII buying are buffering our markets from short-term shocks.”
The current scenario would only alter significantly if the situation escalates to warfare, triggers sanctions, or causes economic disruption. Present indicators suggest this represents a buying opportunity rather than a signal to sell, say experts.
Top 10 Largest Economies In The World 2025: India Set To Overtake Germany, Japan To Become 3rd Largest Soon! Where Do The US, China Stand? Check Full List Here
Top 10 Largest Economies In The World 2025: India To Become 3rd Largest Soon!
Top 10 Largest Economies In The World 2025: What are the 10 largest economies in the world? Did you know that India, which currently stands at the 5th position, will soon become the world’s 3rd largest economy by overtaking Germany and Japan? India is the world’s fastest growing major economy and its nominal GDP has grown 100% in the last 10 years! But even so, as per IMF’s 2025 projection, the GDP of US and China – the world’s largest and second largest economies – will be 7.3 times and 4.6 times respectively – that of India! We take a look at the world’s top 10 largest economies by nominal GDP size as per IMF and when India will become the third largest, next only to the US and China:
United States of America
Top 10 largest economies 2025: The United States of America will continue to be the world’s largest economy in 2025, according to the IMF’s latest World Economic Outlook update. The IMF has predicted that the US economy will have a nominal GDP of $30507.217 billion in 2025. (AI image)
China
Top 10 largest economies in the world 2025: China will rank second on the list of the world’s top 10 largest economies in 2025, as per IMF’s estimates. The latest WEO report pegs China’s GDP for 2025 at $19,231.705 billion. (AI image)
Germany
Germany will continue to be the world’s third largest economy in 2025 as well. According to the IMF, Germany’s nominal GDP in 2025 will be around $4,744.804 billion. (AI image)
India
The world’s fifth largest economy is India! According to the IMF, India’s nominal GDP in 2025 is likely to be $4,187.017 billion. India will overtake Japan to become the 4th largest economy in 2025. In the coming years, it will surpass Germany to rank 3rd in the list of the top 10 largest economies in the world. IMF estimates see India becoming the 3rd largest economy in 2028 with a GDP of $5,584.476 billion. (AI image)
Japan
Japan is currently the world’s 4th largest economy in terms of nominal GDP. In 2025, it will slip to the 4th position with a GDP of $4,186.431 billion, according to IMF’s WEO estimates. (AI image)
United Kingdom
The United Kingdom ranks 6th on the list of world’s top 10 largest economies by nominal GDP size for 2025. IMF’s latest estimates peg the UK’s GDP at $3839.18 billion for 2025. (AI image)
France
France will hold the position of the world’s 7th largest economy in 2025, as per IMF’s latest WEO report. In 2025, France’s nominal GDP is expected to be $3,211.292 billion. (AI image)
Italy
Top 10 largest economies in the world 2025: Italy – with an 8th rank on the list – is estimated to have a nominal GDP of $2,422.855 billion in 2025, according to IMF’s World Economic Outlook report. (AI image)
Canada
Canada will hold the 9th rank on the list of the world’s top 10 largest economies in 2025. The IMF’s latest outlook estimates that in 2025, Canada’s GDP will be $2,225.341 billion. (AI image)
Brazil
Brazil will be the 10th largest economy in the world in nominal GDP terms in 2025. The IMF’s WEO predicts that Brazil’s GDP will be $2,125.958 billion in 2025. (AI image)
Russia
According to IMF estimates, Russia will be the world’s 11th largest economy in nominal GDP terms in 2025. Russia’s GDP is expected to be $2,076.396 billion in 2025. (AI image)
Spain
Spain will rise to the position of world’s 12th largest economy in 2025, according to IMF. Estimates suggest that Spain’s GDP will rise from $1,722.227 billion in 2024 to $1,799.511 billion in 2025. (AI image)
Korea
Korea will be the world’s 13th largest economy in 2025, as per IMF estimates in the latest World Economic Outlook. Korea’s nominal GDP is expected to be $1790.322 billion in 2025. (AI image)
Australia
Australia will rank 14th in the list of the world’s largest economies in 2025 on the basis of nominal GDP size. According to IMF, Australia will have a GDP of $1,771.681 billion in 2025. (AI image)
