After the morning reports of 26 Feb 2018 confirmed that the Indian Air Force jets crossed the Line of Control (LOC) and targeted terrorist camps with 1,000 kg explosives, investors went quite restless on their investment. As a result, national equity indices-Sensex and Nifty slipped down, reflecting the market sentiment of investors and traders. Although the strike was on terrorist camps and not on Pakistan as a state Pakistan's KSE100 also plunged to 464.50 points. The shocking reaction was the response of rupee as Indian Rupee opened weaker by 28 paise against US Dollar price on Tuesday 26 Feb 2018 morning.

The main fear among the investor can be the anticipation of war in the future as this IAF Airstrike comes after Pulwama a terror attack. This sentiment was clearly captured by the equity benchmark so the drop in the level has occurred.