Volatile vs Risk 

How Geopolitical Events Like the 2025 Pahalgam Attack Impact the Indian Stock Market

Most investors panic during volatility, thinking it’s risk. That confusion costs wealth.

Curious how geopolitical tensions like the 2025 Pahalgam attack impact Indian stock markets? Volatility vs Risk.

 Are You Sure You Know the Difference?

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When news of geopolitical tensions like the 2025 Pahalgam attack breaks out, the Indian stock market often reacts with a sharp downturn. Red candles, fear-driven selling, and anxiety dominate trading screens.

 But here’s the big question: Is this volatility, or actual risk? Understanding this difference can transform your investing psychology and prevent you from making poor decisions in moments of panic.

🚨 Volatility vs Risk: What’s the Real Difference?

 Let’s simplify:

• Volatility is a temporary price fluctuation. It’s uncomfortable, but not always dangerous.

• Risk is potential capital destruction. It’s permanent and changes the rules of the game. Both can feel the same in the moment, but they are fundamentally different.

📉 Case Study: COVID Crash

During COVID:

• Hotels shut down, Travel froze, Stock prices crashed, but those who saw through the volatility and stayed invested were rewarded:

• IHCL rose +69% in 3 years

• Lemon Tree Hotels surged +50% within 6 months

Now compare that with:

🎬 Structural Risk: The Rise of OTT vs Theaters

OTT platforms didn’t cause volatility — they caused disruption.

• Theaters like PVR and INOX now struggle to compete with Netflix, Prime, etc.

• That’s risk — it rewrites the business model.You can’t just ride it out. You need to adapt your portfolio.

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