Why Operation Sindoor Caused a Bloodbath in Pakistan Stock Market: Explained

Pakistan Stock Exchange (PSX) stopped trading for an hour on Thursday as the benchmark index fell 9%. As per reports, heavy selling pressure has affected the country's stocks amid the news of several drones being shot down in major cities, including Karachi and Lahore.

This has been the biggest single-day fall since 2008. Earlier in the session, the index staged a strong recovery, bouncing back from one of its steepest single-day losses in history on hopes of de-escalation of geo-political tensions.

How Did The Indian Stock Market Perform?

The Indian benchmark index Sensex is trading relatively lower, down by 138 points. But the decline is relatively mild as compared to the sharp pressure witnessed in Pakistan.

What Is The Condition Of The Pakistan Markets?

Previously, Pakistan had experienced a similar market crash last month after US President Donald Trump's announcement of new trade tariffs. Following the announcement, the benchmark index plummeted by over 8,700 points, triggering a brief trading halt.

After the deadly attack in Pahalgam in late April, which killed 26 Indian civilians. As a retaliatory measure India launched a series of military strikes, targeting the terror infrastructure in Pakistan. This was called "Operation Sindoor" by the Indian government.

This conflict between India and Pakistan will have a far more devastating impact on the Pakistan markets as compared to the Indian markets due to Pakistan's economy already being in a fragile condition as well as low investor sentiments.

Also Read: Operation Sindoor: 200+ Flights Cancelled, 18 Airports Closed Temporarily