India-Pakistan ceasefire impact: The Pakistan stock market's key indicator, the Karachi 100 (KSE 100) index, surged by more than 9% as trading commenced on Monday, following the Pakistani military's weekend call seeking a ceasefire with India, after Pakistan sustained significant damage to its air bases.
The KSE 100 saw a remarkable surge, climbing over 9% to reach 117,104 points, building upon Friday's 3.5% gain. Earlier, Pakistani equities experienced significant pressure, with trading suspended for an hour on Thursday after the main index plummeted 7.2%, sparked by panic in response to India's Operation Sindoor.
Trading at Pakistan's stock exchange was suspended for an hour after the KSE-100 share index surged by 8.84% during early trading hours.
The trading halt was triggered when the KSE-30 index recorded a 5% increase from the previous day's closing figures, in accordance with stock market protocols. The suspension affected all equity and equity-based market operations.
The KSE 100 has recorded a 3.4% decline in May, following April's 5.5% drop, primarily due to heightened tensions between India and Pakistan after the terrorist incident targeting tourists in Pahalgam, Kashmir on April 22.
Concurrently, Indian market indices Sensex and Nifty registered gains exceeding 2.7% on Monday. However, market experts warned that potential ceasefire breaches by Pakistan could adversely affect the current positive market sentiment.
"India's trade negotiation initiatives are set to reinforce international commercial connections and enhance its export capabilities, ensuring consistent foreign investment inflows and improved market competitiveness. The combination of well-balanced international relations and robust alliances positions India as a dependable investment destination," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
"The ceasefire between India and Pakistan has paved the way for a sharp market rally. The key driver will be sustained FII buying, which continued for sixteen straight days—except last Friday when tensions spiked. Domestic macros like high GDP growth expectations, a revival in FY26 earnings, and declining inflation and interest rates support a renewed market uptrend," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The KSE 100 saw a remarkable surge, climbing over 9% to reach 117,104 points, building upon Friday's 3.5% gain. Earlier, Pakistani equities experienced significant pressure, with trading suspended for an hour on Thursday after the main index plummeted 7.2%, sparked by panic in response to India's Operation Sindoor.
Trading at Pakistan's stock exchange was suspended for an hour after the KSE-100 share index surged by 8.84% during early trading hours.
The trading halt was triggered when the KSE-30 index recorded a 5% increase from the previous day's closing figures, in accordance with stock market protocols. The suspension affected all equity and equity-based market operations.
The KSE 100 has recorded a 3.4% decline in May, following April's 5.5% drop, primarily due to heightened tensions between India and Pakistan after the terrorist incident targeting tourists in Pahalgam, Kashmir on April 22.
Concurrently, Indian market indices Sensex and Nifty registered gains exceeding 2.7% on Monday. However, market experts warned that potential ceasefire breaches by Pakistan could adversely affect the current positive market sentiment.
"India's trade negotiation initiatives are set to reinforce international commercial connections and enhance its export capabilities, ensuring consistent foreign investment inflows and improved market competitiveness. The combination of well-balanced international relations and robust alliances positions India as a dependable investment destination," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
"The ceasefire between India and Pakistan has paved the way for a sharp market rally. The key driver will be sustained FII buying, which continued for sixteen straight days—except last Friday when tensions spiked. Domestic macros like high GDP growth expectations, a revival in FY26 earnings, and declining inflation and interest rates support a renewed market uptrend," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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