The Pakistan Stock Exchange (PSX) plunged 6% at the open on Wednesday, May 7, as markets reacted sharply to India’s Operation Sindoor—a bold pre-dawn military strike targeting nine terror infrastructure sites in Pakistan and Pakistan-occupied Kashmir (PoK).
The Indian Armed Forces confirmed the 1:44 AM missile attacks on key locations including Muridke and Bahawalpur, strongholds of Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM). These strikes came in response to the April 22 Pahalgam terror attack, which claimed 26 lives, including 25 Indian citizens and one Nepali national.
In an official statement, India’s Ministry of Defence stated:
“Our actions have been focused, measured, and non-escalatory in nature. No Pakistani military facilities have been targeted.”
Despite this assurance, the PSX’s KSE-100 Index experienced intense selling pressure amid rising geopolitical tensions and investor panic, wiping out significant market capitalisation within minutes of opening.
India’s Defence Ministry reiterated its resolve to bring the perpetrators to justice, aligning with Prime Minister Narendra Modi’s vow to track down those behind the Pahalgam attack to the “ends of the earth” and punish them “beyond their imagination.”
Adding to the heightened security atmosphere, a nationwide civil defence mock drill was also scheduled across 244 Indian districts on Wednesday, further underscoring the country’s preparedness amid the escalating regional crisis.
The PSX crash reflects broader investor anxiety across South Asia, with global markets watching closely for further escalation or diplomatic fallout.
