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Home » Pakistan Stock Market Crashes After Operation Sindoor

Pakistan Stock Market Crashes After Operation Sindoor

Ananya Pattnaik by Ananya Pattnaik
May 7, 2025
in Business, Trending Now
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Following India’s Operation Sindoor—precision strikes on nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK)—Pakistan’s stock market plunged dramatically.


The KSE-100 index dropped over 6,200 points (6%) in early trading on Wednesday, reflecting investor panic amid rising geopolitical tensions.

  • The KSE-100 index hit a low of 112,076.38, triggering panic selling.

  • The Pakistan Stock Exchange (PSX) later went offline, displaying a message that it is “under maintenance until further notice.”

  • The crash followed overnight Indian air strikes targeting Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen camps.

  • In contrast, Indian stock markets showed volatility but remained resilient, with the Sensex and Nifty swinging during the day.

Why Did It Crash?

  • Fear of escalation: The strikes and Pakistan’s retaliatory shelling at the LoC raised fears of full-scale conflict.

  • Investor uncertainty: Concerns about possible sanctions, international fallout, and economic instability in Pakistan.

  • Systemic vulnerabilities: Pakistan’s fragile economic fundamentals were already under stress, and this geopolitical shock exacerbated market sentiment.

Tags: business newslatest newsoperation sindoorPakistan stock market
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