Share Market News / Pahalgam attack will cause chaos in the market, the condition of the market will change

After the Pahalgam terror attack, India-Pakistan tension is at its peak. India has indicated to stop trade and Indus water with Pakistan. The stock markets are witnessing a decline. This week, the quarterly results of 180 companies and the movement of the US market can decide the direction of the Indian market.

Share Market News: After the Pahalgam terror attack, tensions between India and Pakistan have increased rapidly. Prime Minister Narendra Modi has announced strict punishment for the culprits of the attack. Along with this, India has ended all trade relations with Pakistan with immediate effect and stopping the water of the Indus River is also being considered. The effect of this increasing tension is now clearly visible on the economic and financial markets of both countries.

Fall in Pakistan's market, impact on India too

First there was a tremendous decline in the stock market of Pakistan, and now its effects have started hovering over the Indian stock markets as well. Last week, Sensex and Nifty showed consistent strength, but a sudden decline was seen on Friday. Nifty closed down by 207.35 points, while Sensex recorded a huge decline of 588.90 points. Market experts believe that this pressure may increase further in the coming weeks.

Main reasons behind the fall in the market

1. Increasing tension between India and Pakistan

India's tough stance after the Pahalgam attack and speculation of possible military action has increased uncertainty among investors. Like 2019, the demand for surgical strikes is also rising, due to which there is an atmosphere of fear in the markets.

2. Fourth quarter results

This week more than 180 companies will announce their fourth quarter results. The results of TVS Motor, UltraTech Cement, Bajaj Finance, Bharat Petroleum, Kotak Mahindra Bank, Adani Group companies and other major companies will determine the market movement. Reliance Industries announced its results after the market closed on Friday, the effect of which can be seen on Monday.

3. Effect of US market

US markets rose slightly on Friday. The Dow Jones closed 20.10 points higher at 40,113.50, while the Nasdaq gained a strong 216.90 points. However, the positive movement in global markets may provide some support to the Indian markets, but the pressure of Indo-Pak tension will remain dominant.

4. Role of FII and DII

Last Friday, foreign institutional investors (FII) sold Rs 2,952.33 crore from the Indian markets, while domestic institutional investors (DII) bought Rs 3,539.85 crore. If FIIs continue to sell, the market may fall further.