Hello friends,

Today we will talk about something very important.

👉 If India and Pakistan fight a war, what will happen to India’s stock market?

👉 Has this happened before?

👉 Why are defense companies’ stocks going up today?

Let’s understand everything in very simple words.

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What Happened in the Stock Market Today?

Today, the Indian stock market went up.

• Sensex went up by 105 points and closed at 80,218.
• Nifty went up by 289 points and closed at 24,328.

👉 Banks, metal companies, and medicine companies did well.

👉 But IT and food companies were a little weak.

Overall, the market was happy today.

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Why Did the Market Go Up Today?

Here are the reasons:

1. Donald Trump said he will reduce some taxes.
2. China and America are talking better now.
3. People are buying defense company stocks because they think war might happen.

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What Happened After the Terror Attack in Pahalgam?

A few days back, there was a terror attack in Pahalgam.

• Before the attack, the market was good.
• After the news of the attack, the market fell.

👉 On 25th, the Sensex fell by 1000 points.

👉 Pakistan’s market also fell by 1500 points.

People were scared about water problems, business loss, and war.

But now, the market is fine again.

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Why Are Defense Stocks Going Up?

• Defense companies make weapons, tanks, planes for the army.
• If there is a war, the army needs more weapons.
• So, people think defense companies will earn more money.
• That’s why their stocks are going up.

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What Happened to the Stock Market During Old Wars?

Let’s see what happened before:

1. Kargil War (1999)

• Before the war, the market fell 13%.
• But after the war started, the market went up by 41%.

2. Pulwama Attack (2019)

• After the attack, the market fell a little.
• It recovered quickly.

3. Uri Attack and Surgical Strike (2016)

• After the strike, the Sensex fell by 400 points.
• But it came back up soon.

4. Parliament Attack (2001)

• After the big attack, the market fell 14%.
• This was a big fall.

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What Do We Learn From This?

👉 Small attacks cause small fear in the market.

👉 After some time, the market becomes normal again.

👉 Only very big attacks cause a big fall.

👉 India’s stock market is very strong.

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What Are Experts Saying?

• Don’t be scared.
• Stay calm.
• We don’t know yet if there will be a full war.
• Defense stocks may go higher, but smart people are not panicking.

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What is Happening Around the World?

• After the Russia-Ukraine war, countries are spending more money on armies.
• India is the 5th biggest in the world in army spending.
• Pakistan is much smaller in spending compared to India.

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Final Words

✔️ If a small fight happens, the market may fall a little.

✔️ If a big war happens, the market may fall for a few days and then come back up.

✔️ Defense companies are getting lots of attention.

✔️ Smart investors are staying cool and careful.