Will rising Indo-Pak tensions dent foreign investment inflows to India?
Rising tensions between India and Pakistan following recent military action appear unlikely to significantly affect foreign investor sentiment toward Indian markets, according to analysts and market participants quoted in a Reuters report.India’s economy, which recently crossed the $4 trillion mark, has minimal direct trade with Pakistan. As a result, cross-border missile strikes carried out by India had limited immediate impact on domestic equities, currencies, or bonds.Investors believe that the likelihood of a full-scale conflict remains low. Ajay Marwaha, head of fixed income at Nuvama Group, told the news agency that...