Pakistan Stock Exchange Crashes Nearly 6% After India’s ‘Operation Sindoor’ Strikes Terror Camps

Pakistan Stock Exchange: The Pakistan Stock Exchange (PSX) witnessed one of its sharpest single-day crashes in recent history on Wednesday, plummeting within minutes of the market opening. The benchmark KSE-100 Index dropped by 6,560.82 points, or 5.78%, from the previous close of 113,568.50, following India's aerial strikes on terror camps inside Pakistan and Pakistan-occupied Jammu & Kashmir.

By 10:47 AM on May 7, the index had partially recovered but remained deep in the red, trading at 110,870.19, down 2,606.17 points or 2.30%, reflecting continued market jitters.

'Operation Sindoor': India Targets Terror Camps in Retaliation
The sharp drop came hours after India confirmed its military operation titled ‘Operation Sindoor’, carried out in response to the April 22 terror attack in Pahalgam, Jammu and Kashmir, where 26 tourists, including 25 Indian nationals and 1 Nepali citizen, were brutally killed.
 

In a late-night aerial operation, the Indian Air Force struck nine non-military terror targets affiliated with Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen. Indian government sources said the strikes specifically avoided military infrastructure to avoid all-out war.

“They shot tourists in the head in front of their family members. The family were threatened and told to convey the message of that barbarism,” said Foreign Secretary Vikram Misri during a live media briefing.

“Since tourism was again flourishing in J&K, the main aim of the April 22 attack was to damage that,” he added.

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Opening Bell: Operation Sindoor Sparks Volatility, Sensex & Nifty Slip

Markets Rattled by War Fears and Ceasefire Violations
Shortly after the Indian operation, Pakistan violated the ceasefire, initiating artillery shelling in the Bhimber Gali sector, escalating cross-border tensions. Pakistan Prime Minister Shehbaz Sharif acknowledged the Indian strikes and issued a strong threat of retaliation.

Global observers, including UN Secretary-General António Guterres, have urged both sides to exercise maximum restraint, warning that further escalation could destabilize the region and financial markets.

Indian Stock Market Today

Indian stock markets opened lower on Tuesday, May 7, following a dramatic overnight development in national security.

At the opening bell, the Sensex fell 79.95 points or 0.10% to 80,561.12, and the Nifty was down 14.55 points or 0.06% to 24,365.05. Market breadth was negative with 676 shares advancing, 1,649 declining, and 99 remaining unchanged.