Trading was halted on the Karachi Stock Exchange on Wednesday after Pakistan's benchmark index, the KSE-30, fell over 7%, marking its fourth straight session of losses. The index has declined 9% over four sessions, bringing it close to correction territory.
The steep sell-off followed India's military strikes early on Wednesday targeting nine locations across Pakistan, including Bahawalpur, Muridke, Tehra Kalan, Sialkot, Bhimber, Kotli, and Muzaffarabad. Indian government described the operation as a “precise and restrained response” to the April 22 attack in Jammu and Kashmir's Pahalgam, where 28 civilians, mostly tourists, were killed by in a terrorist attack.
Following the attack, which Indian officials blamed on groups operating from Pakistani soil, New Delhi also suspended the Indus Waters Treaty—a long-standing bilateral agreement on water sharing.
While regional tensions escalated, Indian equity markets showed limited reaction. Both the Nifty and Sensex traded slightly higher, continuing a pattern seen in past cross-border incidents where Indian markets largely withstood geopolitical pressure between the two neighbouring countries.
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