Pakistan stock market suspended as KSE-30 tumbles 7.2% in sharp selloff

Stock market trading in Pakistan was halted on Thursday as the benchmark KSE-30 index plunged 7.2 per cent, a day after India launched targeted strikes following last month's terror attacks.  

 

The benchmark KSE-30 index fell nearly 3 per cent on Wednesday, before being halted for trade on Thursday, as investors watch out for the future escalation of tensions between the nuclear-armed rivals. The broader gauge KSE-100 was down 6.3 per cent, before trading was suspended, a day after it had also fallen 3.13 per cent. 

 

Meanwhile, Indian stocks shrugged off any huge impact with the Nifty50 and the Sensex down by 0.5 per cent and 0.58 per cent, respectively, on Thursday. 

 

Since the Pahalgam terror attack, the KSE-30 index has shed 14.2 per cent, while the domestic Sensex index has moved higher by around 0.7 per cent.   The trading halt in Pakistan's stock market followed blast in Lahore on Thursday morning. Indian Armed Forces targeted Air Defence Radars and systems at a number of locations in Pakistan, Ministry of Defence said in an official statement. This is in response to Pakistan's attempt to engage a number of military targets in Northern and Western India.   

 

India's 'Operation Sindoor'

 

Stocks in Pakistan began their selloff after 'Operation Sindoor', where the Indian armed forces launched a series of strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). A total of nine sites were targeted by the Indian armed forces, with the Indian Army shortly announcing, "Justice is served."

 

Pakistan said it “reserves the right to respond, in self-defence, at a time, place, and manner of its choosing.” However, officials said at an official media briefing that the Indian armed forces are fully prepared to respond to any possible misadventures by Pakistan that could escalate the situation.

 

 

Pakistan retaliates against 'Operation Sindoor'

 

Pakistan violated the ceasefire across the Line of Control (LoC) yet again, soon after the strikes by India, and carried out heavy firing along the border. As per reports, Pakistan fired artillery in Jammu and Kashmir's Bhimber Gali area.

 

The Indian Army is responding "appropriately in a calibrated manner", officials told news agencies.

 

Indian markets shrug off huge impact

 

Since the 1990s, several high-stakes India–Pakistan episodes—from Kargil and Parliament attacks to Uri and Pulwama—have tested investor nerves. But the Sensex and the Nifty have consistently demonstrated remarkable immunity to sabre-rattling. Market corrections, if any, have been modest, short-lived and largely sentiment-driven.

 

Here's a detailed report on how Indian markets have reacted to the India-Pakistan war in the past. 

 

Travel advisory 

 

Various countries, from Singapore to Israel, advised their citizens to defer all non-essential travel to Jammu and Kashmir in India and to Pakistan, amid tensions between the two neighbours.