On Wednesday, India carried out airstrikes on nine terrorist locations in Pakistan and Pakistan-occupied Kashmir (PoK) as part of “Operation Sindoor.” This military action caused chaos in Pakistan’s stock market, with the KSE 100 index dropping by 6,272 points, which is about 6%, in early trading. The KSE-100 index fell to a low of 112,076.38, promoting panic selling among investors.
Currently, the Pakistan Stock Exchange (PSX) is “under maintenance until further notice,” meaning no trading is happening right now.
Why Did the Markets Fall?
The drop in stock prices happened right after India targeted these sites with precision airstrikes. Tensions between India and Pakistan increased dramatically after this. Both countries saw military activity as fighter jets were reported flying, and ceasefire violations occurred along the Line of Control (LoC). While Pakistan’s market struggled, India’s stock market reacted differently: the Sensex peaked at 80,844.63 before dropping to a low of 79,937.48, while the Nifty reached a high of 24,449.60 and a low of 24,220.
Details on Operation Sindoor
India conducted these airstrikes in response to a deadly attack in Pahalgam, where 26 Indian tourists lost their lives on April 22. Operation Sindoor specifically targeted the hideouts of terror groups like Jaish-e-Mohammed (JeM), Lashkar-e-Taiba (LeT), and Hizbul Mujahideen (HM), which are known to operate from within Pakistan. The Indian Army stated that the targets were selected based on solid intelligence regarding their involvement in terrorist activities.
Leave a Reply