“Operation Sindoor” Triggers Stock Market Carnage in Pakistan

On Thursday, the Pakistan Stock Exchange (PSX) experienced a significant downturn, with the benchmark KSE-100 index plummeting by 6,948.73 points, or 6.32%, to 103,060.30.

This sharp decline prompted a temporary halt in trading for an hour, as per reports from the PSX.

The market turbulence follows India’s recent military operation, dubbed “Operation Sindoor,” which targeted nine locations in Pakistan and Pakistan-occupied Kashmir. The strikes, aimed at alleged terrorist infrastructure, have intensified geopolitical tensions in the region.

Investor Sentiment Shaken by Drone Incursions

Adding to investor anxiety were reports of multiple drone incursions into Pakistani airspace. The Pakistani military stated that it had shot down 25 Indian drones over major cities, including Karachi and Lahore. These incidents have raised concerns about escalating conflict and its potential impact on the country’s security and economy.

Comparative Market Reactions

In stark contrast to the turmoil in Pakistan, Indian stock markets have remained relatively stable. Both the Sensex and Nifty indices initially showed positive movement on Thursday before experiencing mild volatility.

Notably, since the Pahalgam attack on April 22nd, Indian benchmark indices have actually gained between 0.6% and 1.2%.

The PSX’s recent performance underscores the fragility of investor confidence amid geopolitical uncertainties. Market participants are closely monitoring developments, with particular attention to any further military actions and their potential repercussions on regional stability and economic conditions.