India-Pakistan tension: Market fall only a knee-jerk reaction, say analysts

Both the nations are sitting on a nuclear bomb and that will act as a war-deterrent, said G Chokkalingam, founder and managing director at Equinomics Research.

The steep fall witnessed in markets on Tuesday amid reports of fresh geopolitical tensions between India and Pakistan was a knee-jerk reaction and the negative sentiment will taper-off soon, say market experts. However, if the government officially confirms the development, the uncertainty in the market would last a little longer, they say. 

The benchmark index, S&P BSE Sensex, opened over 370 points lower on Tuesday after reports suggested Indian  fighter jets had destroyed a major terrorist camp in Balakot in Pakistan as tensions between the two nations rose following a suicide terror attack in Pulwama earlier this month.

However,