Will Sensex look beyond geopolitics? Check out data from last 2 decades

Will Sensex look beyond geopolitics? Check out data from last 2 decades
By , ET Bureau
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Synopsis

​​Data for the last two decades show globally stock markets have mostly ignored geopolitical conflicts beyond a point. Excluding two instances, markets have not only recovered all the losses but also given positive returns within a month of such events.

Agencies
Global markets were already skittish over rising interest rates amid higher inflation and high energy prices.
Indian stock benchmarks crashed over 3% on Monday along with global peers, rattled by the US warning that Russia could invade Ukraine anytime and crude prices crossing $96/bbl.

Global markets were already skittish over rising interest rates amid higher inflation and high energy prices. Will this conflict escalate and drag down broader markets further and for a longer term? Not necessarily.

Data for the last two decades show globally stock markets have mostly ignored geopolitical conflicts beyond a point. Excluding two instances, markets have not only recovered all the losses but also given positive returns within a month of such events. For example, the Indian benchmark declined 1.2% on June 15, 2020, over Indo-China border tension, but gained 7.6% within a month.


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