Markets Reaction on different aspects: Markets, political, military, percentage of fall, gain percentage,reason of fall.

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Home > Investment School > Markets react temporarily to political news....

Markets reacts only temporarily to political and military news but the reaction to fundamental news is permanent and pronounced. See the chart below when ever the Index fell in the backdrop of political or military news (terrorist attacks, wars etc) it recovered fully after a year. Therefore investors should not sell on news that do not affect the Company fundamentals.As always this is one of the hardest things to do because when prices fall people can lose sleep irrespective of whether they are long term or short term investors.

Date of event	Index	Percentage of fall	Reasons for the fall	One year later	Index	Gain Percentage
04-04-2000	5053	7.15%	Technology crash	04-04-2001	3605	-29%
11-04-2001	3458	4.26%	Tehelka Expose	11-04-2002	3479	1%
12-09-2001	3150	3.73%	W.T.C 9//11	12-09-2002	3126	-1%
14-09-2001	2987	5.27%	W.T.C 9/11	14-09-2002	3098	4%
17-09-2001	2830	5.27%	W.T.C 9/11	17-09-2002	3076	9%
31-03-1997	3666	8.26%	Sitaram Kesari pulls support	31-03-1998	3896	6%
10-06-1998	3469	4.52%	Pokhran Blast	10-06-1999	4041	17%
15-06-1998	3349	5.81%	Pokhran Blast	15-06-1999	3951	18%
26-04-1999	3406	4.74%	Jayalalitha Withdraws support	26-04-2000	4534	33%
17-05-2004	4505	11.13%	B.J.P loses power and a Left front supported Congress Govt. is elected	17-5-2005	6466	43.52%

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