Geopolitical Tensions Rattle PSX, KSE-100 Sheds Nearly 900 Points in Early Trade

The Pakistan Stock Exchange (PSX) plunged on Monday morning as geopolitical tensions between Pakistan and India and anticipation surrounding the Monetary Policy Committee (MPC) meeting spooked investors. The KSE-100 Index fell by 890.47 points, or 0.78%, to 113,223.46 by 9:40am, continuing the bearish momentum from the previous week.

The market’s decline followed reports of potential Indian airstrikes, after Indian Prime Minister Narendra Modi met with Air Chief Marshal VR Chaudhari on Sunday. The meeting came after a recent militant attack in Pahalgam, intensifying fears of regional escalation.

The uncertainty weighed heavily on all major sectors. Shares of major players such as HUBCO, PSO, OGDC, PPL, MARI, SNGPL, MEBL, NBP, and UBL witnessed declines amid the widespread sell-off.

Traders reported a sharp risk-off sentiment, with investors moving to the sidelines ahead of the SBP’s monetary policy announcement expected later today. Analysts believe both geopolitical concerns and domestic policy uncertainty are discouraging market participation.

Meanwhile, in stark contrast, Indian equities remained upbeat. The Nifty 50 rose by 0.59%, and the BSE Sensex gained 0.54%. Foreign Portfolio Investors (FPIs) have reportedly been net buyers of Indian stocks for 12 consecutive sessions, the longest streak in two years.

Despite India’s market performance, analysts warn that persistent border tensions could also cast a shadow on their recent rally.