Equities remain the best investment bet even during cross border tensions

Within equities, an investor needs a diversified portfolio, and an exchange-traded fund is a preferred instrument

When tensions were escalating between India and Pakistan, the stock market remained largely unperturbed. On February 26, when India bombed Balakot in Pakistan, the Sensex dropped 0.7 per cent. It fell marginally further a day later, when the Pakistan Air Force tried to target Indian military installations, but failed. There was no significant fall in the markets even though the chatter of war between the two countries was rising.

But this behaviour of the country’s stock market is not unusual. If you look at past war or military standoffs between India and its neighbours, escalating tensions didn't usually impact the