SIPs Continue Despite Rising Indo-Pak Tensions, Are Average Investors Clueless About War Risk?

In this episode of Market Commentary by Business Today, Punita Kumar Sinha, Managing Partner at Pacific Paradigm Advisors, shares a sobering perspective on the current geopolitical tensions and their muted impact on Indian financial markets. She explains that most market participants and average investors remain unaware of the full extent of the evolving war situation, largely due to the fluid nature of events and limited dissemination of intelligence by governments seeking to avoid public panic. With rising risks and the potential for rapid escalation—especially considering the unpredictable actions of Pakistan—Sinha emphasises the need for caution. Despite these uncertainties, Indian markets have shown little reaction, as retail investors continue their SIPs without fully grasping the gravity of the situation. This episode delves into why the markets appear calm in the face of mounting geopolitical threats.