India-Pakistan Tensions Reflect in Stock Market Performance

Following the Pahalgam terror attack and the initiation of Operation Sindoor, the stock markets of India and Pakistan have displayed markedly different reactions, underscoring India's economic resilience.

India's Nifty50 experienced a slight decline of 1.52%, whereas Pakistan's KSE-100 saw a significant drop of 5.55%.

Since the April 22 attack, Pakistan's main stock market index has plummeted by 9.5%, in stark contrast to India's Nifty, which barely moved, with only a 0.66% decrease.

Economic Strength and Market Stability

India's stock market, being 245 times larger than Pakistan's, showcases remarkable stability in the face of geopolitical uncertainties. With over 5,000 listed companies and strong domestic investment, India's economic foundations are solid.

Conversely, Pakistan's market, with only 500 listed companies, is highly sensitive to political unrest, leading to sharp declines.

Global Economic Positions

India stands as the fifth-largest economy globally and is the fastest-growing major economy. Pakistan, however, does not rank among the top 40.

Moody's has warned that ongoing tensions could severely impact Pakistan's economic growth and fiscal consolidation efforts.