Firstly, the scrapping of the Section 370 is unlikely to have any major impact on the markets. Of course, it does lead to a war like situation on the borders then markets may get jittery but as of now there is no such fear. Markets corrected on Monday for a different set of reasons altogether. Here are some of the reasons the markets corrected.

· Global markets were all down with uncertainty over BREXIT deal for UK and the trade driven slowdown for China and the US. This has raised fears of an economic slowdown and that had an impact on stock markets on Monday.

· Secondly, the bigger reason was the decision by the People’s Bank of China to let the Yuan drop. In fact, the Yuan dropped beyond 7/$ which is a 10-year low. China is obviously doing that to boost exports but it hit a lot of EM currencies including India.

· Thirdly, don’t forget that India has its own set of domestic problems in the form of a consumption slowdown, worsening bad debts situation and weak exports. All these factors also added up.

As far as Article 370 scrapping is concerned, it should hopefully make Kashmir safer and boosts tourism revenues.