India Strikes Pakistan Stocks, Kse100 Tumbles 3,300 Pts; Here's How 

Pakistan stocks took a beating connected Wednesday, pinch their benchmark scale KSE100 plunging astir 3,200 points aliases 3 per cent successful brisk-selloff amid fears India was astir to onslaught nan state aft nan Pahalgam panic attack. 

The selloff comes successful nan backdrop of comments by Pakistan's Information Minister Attaullah Tarar wherever he cited “credible intelligence” reports to propose India was looking to behaviour a subject action against Pakistan successful nan adjacent 24 to 36 hours. 

KSE100 fell 3,182.40 points, aliases 2.77 per cent, to 1,11,689.79. Stocks specified arsenic AGP, Nishat Mills, Pakistan International Bulk Terminal Ltd, Pioneer Cement Ltd and Adamjee Insurance Company Ltd tumbled 6-10 per cent successful today's trade.

Against this, nan home banal marketplace arsenic suggested by nan BSE Benchmark Sensex was calm, pinch nan scale settling nan time astatine 80,242.24, down 46.14 points aliases 0.06 per cent.  The momentum is being capped by rising tensions betwixt India and Pakistan and muted Q4 results, Vinod Nair, Head of Research astatine Geojit Investments said.

The Prime Minister Narendra Modi had connected Tuesday chaired a gathering pinch nan subject brass successful New Delhi. Reports propose he has fixed equipped forces complete operational state to determine connected nan mode, targets and timing of nan Indian response. Shares of defence stocks were buzzing successful Wednesday's trade, taking their caller gains to yet different session. 

India has taken respective steps since including halting waste and acquisition pinch Pakistan, expelling Pakistani officials from nan High Commission, cancelling visas nether nan Saarc Visa Exemption Scheme and suspending nan Indus Waters Treaty (IWT).

 "India’s determination to suspend nan IWT could earnestly restrict Pakistan’s h2o supplies. Pakistan has deemed India’s suspension of nan Indus Water Treaty (IWT) an ‘act of war’. India’s determination intends that it could, if and erstwhile it chooses to, restrict nan travel of h2o from nan Indus, Jhelum and Chenab into Pakistan. But it does not mean that India plans to restrict this travel immoderate clip soon," said Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings. 

Sharma said: "Should India do this, this would wounded Pakistan, wherever it hurts astir because Pakistan is simply a mostly agrarian economy, pinch agriculture contributing 24  per cent to nan country’s GDP and 37.4 per cent to employment. In position thereof, India’s determination could origin an existential situation for nan Pakistani economy, which is already successful tatters." 

Pakistan economy

Sharma said Pakistan’s system is already successful an abysmal mess, irrespective of nan criteria adopted. In 2025, Pakistan's GDP is projected to beryllium little than moreover one-tenth of India’s $4.2 cardinal system astatine astir $348.72 billion; fiscal shortage is astatine 7.4 per cengt of GDP, astir doubly nan location average.

"Pakistan's full overseas speech reserves were precariously placed astatine $16.04 cardinal (no measurement comparable to India's forex reserves of $686.2 billion). In different words, nan asymmetry pinch nan Indian system could not perchance person been much pronounced. What worsens matters is nan complete illness of nan credibility of Pakistan at each world fora, starkly revealed successful nan seizure and sidesplitting of Osama Bin Laden successful Abbottabad, successful adjacent proximity to their subject headquarters," Sharma said.

Published on: Apr 30, 2025 3:50 PM IST