After the Pahalgam terror attack, tension between India and Pakistan is reaching its peak. Pakistan's stock market is in turmoil. The benchmark KSE-100 index of Pakistan Stock Exchange has fallen by about 4 percent, while India's Sensex has risen by 1.5 percent. This shows what effect this atmosphere of great tension is having on the economies of both the countries and how much trust do investors have in whom.
26 people were killed in the terrorist attack in Pahalgam on 22 April. Most of them were tourists. Neighboring country Pakistan is being held responsible for this terrorist attack. According to media reports, after this attack, the KSE-100 index of Karachi Stock Exchange has fallen by 3.7 percent between 23 April and 5 May.
On April 30, the condition of the Pakistani stock market deteriorated even more, when it fell by 3,545 points in a single day and closed at 111,326.57. Heavy selling was also seen in big stocks like LUCK, ENGROH, UBL, PPL and FFC. Due to the shares of these companies alone, the KSE-100 index went below 1,100 points. On May 2, the market saw a recovery of 2.5 percent, but experts believe that this recovery in the market is temporary, that is, it is not going to last for long.
On the other hand, despite the ongoing geopolitical tension, India's BSE Sensex has risen by 1.5 percent. Brokerage firm Anand Rathi says that except for the attack on Parliament in the year 2001, the Indian stock market has not fallen by more than 2 percent during the time of tension with Pakistan. Even if the situation worsens further, Nifty 50 will not fall by more than 5 to 10 percent.
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