Karachi Stock Market Crashes After India's Operation Sindoor

Karachi Stock Market Crashes: The Pakistan stock market faced a major crash on Wednesday, May 7, 2025, after India launched 'Operation Sindoor' — an overnight military strike on nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). This action was a response to a deadly terror attack in Pahalgam, Jammu & Kashmir.

Also Read: Operation Sindoor: Why Indian Stock Markets Didn't Panic

Karachi-100 Index Falls by Nearly 6%

The main index of Pakistan’s stock exchange, the KSE-100, dropped by 6,272 points or almost 6% in early trading. It hit a low of 107,296.64 compared to the previous day's close of 113,568.51. This is one of the sharpest drops in recent times for the Pakistani market.

Tensions Since April Terror Attack Impact Markets

Since the terror attack in Jammu & Kashmir on April 22, the KSE-100 index has dropped by around 4%. Between April 23 and May 5, it had already fallen by 3.7% due to rising concerns over possible military conflict between India and Pakistan.

Indian Stock Market Remains Steady

In contrast, the Indian stock market stayed strong. Although the Sensex initially fell by 692 points, it quickly recovered and went back above 80,800. Around 10 AM on May 7, the Sensex was just 32 points down, and the Nifty 50 dropped by only 19 points.

Expert View: Indian Markets Show Long-Term Resilience

Pankaj Singh, a market expert from SmartWealth.ai, said that while Indo-Pak tensions can cause short-term fear, Indian markets usually bounce back. He gave examples from history:

• After the Kargil War, Sensex jumped 63% within a year.
• After the Parliament Attack, it rose by 20%.
• After the Mumbai Attacks, it gained 60%.
• After Balakot airstrikes, it rose 15% by year-end.

Singh advised investors to remain calm and focus on long-term fundamentals rather than panic.

Also Read: Sensex rose 387 points in early trade today