The Pakistan Stock Exchange (PSX) was forced to halt trading on Thursday after a massive selloff dragged the KSE-30 index down 7.2 per cent in intraday trade. The sharp correction followed a series of retaliatory strikes by India on Pakistani air defence systems, in response to attempted military engagements in Northern India.
The KSE-30, which had already declined nearly 3 per cent on Wednesday, hit circuit limits early in the day. The broader KSE-100 index also plunged 6.3 per cent before trading was suspended.
According to PSX norms, such steep declines trigger market-wide halts to prevent panic-induced liquidation. The situation was further compounded by reports of a blast in Lahore on Thursday morning, heightening investor concerns over escalating conflict between the two nuclear-armed neighbours.
India responds to LoC violations; markets reflect the fallout
On Thursday morning, India’s Ministry of Defence confirmed that Indian armed forces had successfully neutralised air defence radars and missile sites at multiple Pakistani locations. This came as a direct retaliation to what India called an unprovoked attempt by Pakistan to target Indian military establishments.
“Pakistan has intensified unprovoked firing along the LoC in areas such as Uri, Rajouri, and Baramulla,” the Indian defence ministry said, reiterating that Indian forces remain committed to non-escalation if provoked no further.
KSE-30 drops 14% since Pahalgam attack; Indian indices resilient
Since the Pahalgam terror attack, the KSE-30 index has lost 14.2 per cent, reflecting growing unease over the political and economic fallout of continued cross-border hostilities. In contrast, Indian markets have largely held their ground.
The BSE Sensex closed Thursday with a 0.5 per cent drop, while the NSE Nifty50 dipped 0.58 per cent. Despite the spike in the India VIX to 21.4, indicating elevated volatility, Indian investors remained broadly calm, banking on a limited escalation.
Outlook cautious as geopolitical overhang persists
With no clear signs of de-escalation and rising military exchanges at the LoC, analysts expect Pakistani equities to remain under pressure. Foreign investors are likely to stay on the sidelines until greater clarity emerges on the geopolitical front.
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Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
