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In April 2025 Pahalgam The terrorist attack in the country shook the country. 26 innocent people died and the attack was directly accused of Pakistan -based terrorists.
As soon as this news spread, outrage spread throughout the country. The stir on the border increased and the demands of war on social media intensified. But in the meantime, an interesting thing was that while there was an atmosphere of fear and restlessness everywhere, the move of the stock market was telling something else.
Pakistan’s stock market fell badly
Pakistan’s Karachi Stock Exchange (KSE-100) stumbled badly after the attack. The index fell 7,500 points in just two weeks, ie about 6 percent declined. Shares of big companies like LUCK, Engroh and UBL were also washed away in this decline.
On the other hand, India’s stock market showed the opposite trend. The BSE Sensex recorded a 1.5 per cent gains at the same time. But this was not the first time India’s stock market stood firmly despite Indo-Pak tension.
Indian markets always strengthened
Whenever there have been tension or terrorist attacks between India and Pakistan in the last two decades, the Indian stock market initially showed a slight decline, but soon achieved stability. For example, after the Pulwama attack in 2019, the Sensex and Nifty declined by more than 1.8 per cent between 14 February to 1 March.
Similarly, during the Uri attack in 2016 and subsequent surgical strikes, the market fell nearly 2 percent between September 18 to 26. There was a sudden decline in the market at the time of the attack on Parliament in 2001, the Sensex declined by 0.7 per cent and the Nifty by 0.8 per cent, but the market handled itself as soon as the situation came under control.
Apart from this, in 2008, when there was a 26/11 terror attack on Mumbai, the market was still strong instead of nervousness, the Sensex gained 400 points and the Nifty gained 100 points. At the same time, during the 1999 Kargil War, the stock market showed flexibility and only a slight decline of 0.8 percent in the three -month war period. It is clear from these incidents that the Indian stock market is gradually becoming more mature and stable towards political and military crises.
The attack on Parliament in 2001 and the subsequent military tension also led to economic loss, but the impact on the stock market was limited. The main reason for this is India’s strong economy, which is based on domestic demand, investment and stability.
Business with Pakistan is negligible
The economic relations between India and Pakistan are almost zero. In 2024, Pakistan was only 0.5 percent of India’s total exports. For this reason, when there is tension on the border with Pakistan, it does not directly affect India’s economy.
Pakistan’s situation is very weak
The situation of Pakistan is more fragile in all this. Already, due to economic crisis, IMF debt, lack of energy and political instability, its market collapses in small shock. The huge decline of Karachi Stock Exchange is a direct proof of this. Investors withdraw money, business stops and inflation increases.
