26 people lost their lives in the attack in Pahalgam. It is alleged that Pakistan’s terrorists are behind this attack. According to the Economic Times, after this incident, the KSE-100 index of Karachi Stock Exchange fell 3.7% between April 23 and May 5. People are afraid that military action between the two countries does not begin.
There was devastation on 30 April!
On April 30, the Pakistani stock market fell even more. The KSE-100 index declined by 3.09%, the highest in several weeks. Shares of big companies like Luck, Engroh, UBL, PPL and FFC declined drastically.
Although the market is 2.5% care on May 2, experts say it can be just a ‘dead-Kat bounce’. This means that the market has improved for a while, but it is not going to last. Experts say that until the stress does not decrease, there is less hope of improvement in the market.
What is the status of the Indian stock market?
On the other hand, India’s BSE Sensex has increased by 1.5% despite regional risks. Brokerage firm Anand Rathi says that except for the attack on Parliament in 2001, the stock markets of India did not fall more than 2% in the tension time with Pakistan. He also says that even if the situation deteriorates, the Nifty 50 will not fall by more than 5 to 10%.
Moody’s also warned
Moody’s rating agency has warned that increasing tension with India may affect Pakistan’s economic growth. At the same time, the Pakistani government which is trying to improve the financial situation may also be hindered. Moody’s says that if the crisis goes on long, Pakistan may face problems in the money received from outside countries and also increase pressure on its foreign exchange reserves.