The Pakistan Stock Exchange (PSX) faced sharp selling pressure on Monday as escalating tensions between Pakistan and India rattled investor confidence, dragging the benchmark KSE-100 Index down by almost 900 points in early trade. By 9:40am, the index had fallen to 113,223.46, shedding 890.47 points or 0.78 per cent, continuing last week’s downward trajectory.
Investor sentiment soured following reports of potential Indian airstrikes after Indian Prime Minister Narendra Modi’s high-level meeting with Air Chief Marshal VR Chaudhari on Sunday. This development came in the wake of the recent militant attack in Pahalgam, intensifying regional uncertainty. Key sectors bore the brunt, with major stocks such as HUBCO, PSO, SNGPL, MARI, OGDC, PPL, MEBL, NBP, and UBL all trading in negative territory.
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Market analysts noted that the downturn was also influenced by caution ahead of the State Bank’s Monetary Policy Committee meeting scheduled later in the day. Investors are closely watching for clarity on the policy rate amid both geopolitical jitters and domestic economic uncertainty.
In contrast, Indian equities remained resilient, with the Nifty 50 and BSE Sensex both posting gains in early trade, buoyed by foreign inflows and easing global trade concerns. However, analysts warned that ongoing regional tensions and mixed corporate earnings could weigh on Indian markets in the near term.
