Tremours Of India-Pakistan War On Karachi Stock Exchange, Pakistan Markets Crack 10% In 2 Days As Operation Sindoor Intensifies

India’s Operation Sindoor—launched in the early hours of Wednesday in response to the deadly Pahalgam terror attack—has triggered a wave of panic selling in the Pakistan Stock Market, resulting in historic losses for the second consecutive trading day.

While Indian forces struck terror camps across Pakistan and Pakistan-occupied Jammu & Kashmir with surgical precision, the financial fallout was immediate across the border. The KSE-100 index, Pakistan’s benchmark, has plummeted over 10% in just the last two days, marking one of the sharpest downturns in the exchange’s recent history.

At the time of reporting, the KSE-100 was trading at 103,530, marginally up by 13.62 points or 0.01%, but this comes after a bruising decline.

Over the past day, the index dropped more than 7%, while its five-day loss stands at 9.49%, and one-month losses have reached 10.05%.

Rs 1.3 Trillion Wiped Out from PSX in Three Days
According to open-source data, the Pakistan Stock Exchange (PSX) witnessed an unprecedented intraday swing on Thursday, plunging over 6,400 points at its lowest. This sharp correction erased a staggering Rs 820 billion in market capitalisation in a single session. Cumulatively, the PSX has seen a total market value erosion of Rs 1.3 trillion over just three trading days.

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Pakistan Stock Market Crashes Nearly 7%, Trading Halted After India’s Operation Sindoor

The steep fall on May 7 saw the KSE-100 crash by 6,560.82 points or 6%, dropping from 113,568.50, shortly after India’s aerial strikes on terror camps were confirmed. This marked one of the sharpest single-day crashes in recent memory for the PSX.

Trading Suspended Amid Panic on May 8
The following day, May 8, panic deepened. Reports of Indian drone strikes on key Pakistani cities, including Karachi and Lahore, sent markets into free fall. The PSX was forced to close early at 1:30 PM, as the KSE-100 tumbled nearly 7,000 points or over 7%, prompting trading suspensions and circuit breakers.
 

As the situation unfolds, market watchers remain on edge, with volatility likely to persist in the Pakistan Stock Market until there is clarity on the direction of Indo-Pak relations.