Operation Sindoor: Pakistan Stock Market Plummets Over 14% in Two Days

Following Operation Sindoor, Pakistan’s stock market plummeted for the second consecutive day, forcing authorities to briefly halt trading.

As of 3 p.m., the Karachi Stock Exchange (KSE) 30 had dropped 7.75%, while the KSE 100 fell 7.17%.

Over the last two days, the two benchmark indices have together declined by over 14%. On Wednesday, the KSE-30 plunged 7.2%, while the KSE-100 dropped 5%.

In contrast, India’s stock market has remained volatile but largely flat, despite the rising tension between the two countries.

The sharp fall in Pakistan’s stock market comes as India launched retaliatory strikes under the codename Operation Sindoor on Wednesday. The military action occurred exactly two weeks after 26 people, mostly tourists, were killed in a terror attack in the Baisaran Valley of Pahalgam, Kashmir.

According to Moneycontrol, before the latest round of hostilities between the two nations, market sentiment in Pakistan was improving, supported by a sovereign credit rating upgrade and a decline in global oil prices. Last year, Pakistan’s stock market posted its highest return in 22 years, attracting renewed interest from global investors. Asset management firms such as BlackRock and Eaton Vance increased their exposure to Pakistan’s $50 billion equity market, which returned an impressive 84% in the past year.

Meanwhile, in India, an all-party meeting was convened to brief political leaders about the precision strikes on terrorist camps in Pakistan and Pakistan-occupied Kashmir.

Defence Minister Rajnath Singh, who chaired the meeting, informed attendees that Operation Sindoor is still ongoing. He emphasized that India will continue to retaliate if Pakistan escalates further.