Operation Sindoor: Pakistan stock market crashed, sensex green

Posted by Nilesh waghela 

Mumbai: The Pakistan Stock Exchange on Wednesday recovered from early losses to tank 3,500 points after reports of an Indian strike on terror camps in Pakistan-occupied Kashmir (PoK).

The KSE-100 index plunged 6,272 points, or 5.5%, to 107,296 in early trade. Since April 23, the index has lost a total of 9,930 points.

The Pakistan Stock Exchange’s flagship KSE100 index opened 6,560.82 points lower at 107,007.68, down 5.78 per cent on Wednesday. It was down 1,211 points or 1.07 per cent to 112,356.89 at 11:21 am on Wednesday.

Following India's strike on terror hubs, Pakistani markets plunged, reflecting economic vulnerabilities. Conversely, Indian markets initially dipped but quickly recovered, buoyed by strong investor confidence and robust economic prospects. 

The divergence highlights differing perceptions of risk and resilience between the two economies, with India seen as a stable haven and Pakistan grappling with economic challenges.

Traders in shock as Pakistan Stock Exchange crashes following India's Operation Sindoor airstrikes on terror bases in Pakistan and PoK. (Image: Shutterstock)

Investors at the Pakistan Stock Exchange (PSX) faced some deep losses on Wednesday. The benchmark KSE-100 index tumbled by a massive 6,500 points in today’s trading session, wiping out nearly 6% of its value in a matter of hours.

This whopping decline dragged the Pakistan stock exchange main index KSE 100 down to 107,007, triggering panic selling across trading floors and financial circles.

An escalation in India-Pakistan tensions is expected to “weigh on Pakistan’s growth and hamper the government’s ongoing fiscal consolidation,” rating agency Moody’s said in its report.

A Moody’s report cautioning that India-Pakistan tensions could affect Pakistan’s economic stability also weighed on the KSE100.

It could also affect Pakistan’s access to external financing while exerting pressure on its foreign exchange reserves, according to the report.

On May 9, the IMF’s executive board will meet Pakistani officials for a fresh credit line of $1.3 billion to Islamabad under the climate resilience loan programme. The IMF will also review the ongoing $7 billion bailout package extended to Pakistan.