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

The Karachi Stock Exchange witnessed a sharp sell-off on Thursday, triggering an early market closure at 1:30 PM after the benchmark KSE-100 index tumbled nearly 7,000 points amid reports of drone strikes in multiple cities. The steep fall prompted trading suspension, reflecting panic among investors and heightened geopolitical tensions.

At this moment of writing the story, the stock is trading at 103,060.30, down by 6,948.73 or 6.32%.

However, there were early morning gains; the benchmark KSE-100 index surged by 1.7%, or 1,850 points, offering investors a temporary respite.

However, by 12:33 PM, these gains had completely reversed. Currently, as of writing, the KSE-100 is trading at 108,121.24, marking a decline of 1,914.72 points or 1.76% from the opening level of 110,842.45.

At 1:00 PM, the index continued its downward trend, settling at 107,080.66, down by 2,928.37 points or 2.66%.

According to TradingView data, the KSE-100 has experienced the following declines:

1.69% over the past 24 hours

4.21% over the last 5 days

6.68% in the past month

Pakistan Stock Exchange Suffers Major Crash Amid Rising Tensions

The Pakistan Stock Exchange (PSX) experienced one of its steepest single-day declines in recent memory on Wednesday, plunging sharply within minutes of opening. The benchmark KSE-100 Index tumbled by 6,560.82 points, or 5.78%, from the previous close of 113,568.50. The crash followed heightened geopolitical tensions after India launched aerial strikes on terror camps located in Pakistan and Pakistan-occupied Jammu & Kashmir.

‘Operation Sindoor’: India Responds to Pahalgam Terror Attack

The market downturn came just hours after India confirmed the execution of a precision military operation, codenamed ‘Operation Sindoor’. The operation was carried out in retaliation for the April 22 terror attack in Pahalgam, Jammu and Kashmir, which claimed the lives of 26 tourists, including 25 Indian nationals and one Nepali citizen.

In a late-night airstrike, the Indian Air Force targeted nine terror-linked facilities associated with Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen. According to Indian government sources, the operation was carefully designed to avoid military infrastructure, aiming to prevent escalation into a broader conflict.