Pakistan stock market sees bloodbath after India's air strikes on terror camps

India's overnight airstrikes on terrorist sites in Pakistan caused a significant stock market crash, with the KSE 100 index plunging.

Updated on: May 7, 2025, 16:59:29 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

India's overnight strikes on nine terrorist sites in Pakistan and Pakistan-occupied Kashmir (PoK) triggered a stock market crash in the country on Wednesday as its main stock market index, the KSE 100 (Karachi Stock Exchange), plunged by 6,272 points or 6% in early trading.

Pakistan's stock market took a nosedive after India carried out precision strikes in the early hours of Wednesday. (Reuters, Representational)

Several hours after India carried out 'Operation Sindoor', the KSE-100 index declined, hitting a low of 112,076.38 and triggering panic selling across trading floors.

As of now, the Pakistan Stock Exchange (PSX) showed no signs of recovery. The PSX website shows a message stating that it is "under maintenance until further notice."

Why did Pakistan markets crash?

The sharp decline can be attributed to India's precision military strikes under Operation Sindoor which targetted terror infrastructure inside Pakistan and Pakistan-occupied Kashmir (PoK).

Tensions between the two countries have flared dramatically after the overnight strikes as nine locations were hit by air strike in the early hours of Wednesday.

Citizens in both nations woke up to news of fighter jets in the air and ceasefire violations along the Line of Control (LoC). Markets in both India and Pakistan reacted to the air raids. In India, the Sensex hit the day's high of 80,844.63 and an intra-day low of 79,937.48 while Nifty hit a high of 24,449.60 and a low of 24,220.

All about Operation Sindoor

In response to the brutal Pahalgam attack that left 26 Indian tourists dead on April 22, India carried out 'Operation Sindoor' targetting nine terror sites in Pakistan and Pakistan-occupied Kashmir (PoK) with precision air strikes. In the early hours of Wednesday, the Indian Army confirmed the military operation and said in a post on X “Justice is served. Jai Hind!”.

The overnight operation targeted alleged hideouts of terror groups Jaish-e-Mohammed (JeM), Lashkar-e-Taiba (LeT), and Hizbul Mujahideen (HM), known to operate within Pakistan’s territory. The Indian Army has stated that the targets were chosen based on strong intelligence inputs and involvement in terror activities.

(Also read: Meet Vyomika Singh, IAF wing commander who led the ‘Operation Sindoor’ briefing)

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.