Is fear of war gone from Dalal Street for good? Ceasefire lifts sentiment, but Anil Singhvi warns against trusting Pakistan

The ceasefire announcement between India and Pakistan may have pulled Dalal Street out of panic mode, but the undercurrent of caution remains strong. Monday's massive 4 per cent rally showed that fears of an immediate war have eased—but experts warn that such peace moves from Pakistan should always be viewed with suspicion.

One can never trust a neighbour like Pakistan

The sudden ceasefire came after intense geo-political tensions along the border. While investors cheered the temporary relief, many believe this is merely tactical. “Everyone is well aware why Pakistan proposed a ceasefire. It’s not from a place of peace—it’s a strategic pause,” said market veteran Anil Singhvi, Managing Editor, Zee Business. 

Ceasefire violations are already factored in

Dalal Street has matured in handling cross-border volatility. Previous ceasefire violations have shown that such truces are often short-lived. Investors are increasingly factoring in these geopolitical fluctuations, making the market less reactive to sudden news, unless it escalates into a full-blown conflict.

Markets will correct only if there’s a real war

Unless the situation turns into an all-out war, analysts expect markets to remain range-bound or positive. The massive 916-point rally on Nifty Monday suggests that sentiment is now calibrated to handle low-level skirmishes or political rhetoric without panic selling.

Zee Business’ travel boycott call gains traction

This came after Zee Business's call for boycotting of Turkey (and even Azerbaijan) by Indian tourists. This vocal campaign was focused on urging Indians to avoid travel to countries like Turkey and Azerbaijan both of which have supported Pakistan’s narrative. “It’s time Indian tourists show economic patriotism. Avoid Turkey. Avoid Azerbaijan. There are enough beautiful places within India to explore,” Singhvi had said on-air.

Zee Business की मुहिम Boycott Turkey & Azerbaijan

दश्मन देश का साथ देने वाले देशों का करें Boycott

Indian Armed Forces के साथ डटकर खड़े होने का समय

अनिल सिंघवी की अपील Turkey या Azerbaijan जाने के बदले जाएं कश्मीर #BoycottTurkey #Azerbaijan #BoycottAzerbaijan #India… pic.twitter.com/j5aTQCWizq

— Zee Business (@ZeeBusiness) May 12, 2025

How much can markets rise post-ceasefire?

While immediate upside may be limited after Tuesday’s bearish trend, experts say Dalal Street could witness another leg of rally if global cues stay positive and the truce holds. But the street has learned its lesson Fwith a pinch of salt.