KSE100 Crashes 6% After Explosions in Pakistan; Trading Halted Amid India Tension
Pakistan’s main stock index, KSE100, dropped sharply on Thursday following reports of explosions in Lahore and Karachi. The index fell by 6,948.73 points or 6.32%, reaching 103,060.30 before the Pakistan Stock Exchange halted trading for an hour.
This fall came a day after India launched 'Operation Sindoor', targeting terror camps in Pakistan and Pakistan-occupied Kashmir (PoK), causing fear of further escalation.
Also Read: Karachi Stock Market Crashes After India's Operation Sindoor
Pakistan Claims Indian Drones Shot Down
According to Pakistan’s military, they shot down 12 Indian drones, which reportedly entered Pakistani airspace. These drones, reportedly of Israeli origin (Harop drones), were allegedly targeting locations including Karachi and Lahore. Debris from the drones is being collected, according to Pakistani military spokesperson Ahmed Sharif Chaudhry.
Domestic Markets Remain Steady
While Pakistan’s stock market reacted strongly, Indian markets like Sensex and Nifty remained stable, showing little impact from the rising geopolitical tension.
Background: India’s Operation Sindoor
On May 7, India launched Operation Sindoor, striking at least nine terror locations across Pakistan and PoK, including Bahawalpur, Kotli, Muzaffarabad, Muridke, Gulpur, Bhimber, Bagh, Chak Amru, and Sialkot.
This marked India’s first missile strike of this scale since the 1971 war. The operation was a response to the Pahalgam terror attack, which killed 20 Indian tourists, making it the deadliest attack since the 2019 Pulwama bombing.
Expert Views on Market Impact
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that markets will remain sensitive to how Pakistan responds. However, he emphasized that a full-scale escalation could hurt investor sentiment across the region.
Emkay Global noted that the situation is unpredictable and could force changes in market strategies depending on how things develop.
Also Read: Operation Sindoor: Why Indian Stock Markets Didn't Panic
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