Sensex Rises as Pakistan Markets Plunge Post Pahalgam Attack — A Tale of Two Economies

The contrast between the Indian and Pakistani stock markets has become glaringly evident in the aftermath of the tragic Pahalgam terror attack that claimed 26 lives on April 22. As geopolitical tensions rise between the two nations, investor sentiment has taken sharply divergent paths.

Pakistan’s stock market took a significant hit, with the KSE-100 index dropping nearly 4% between April 23 and May 5. The steep fall reflects growing concerns among investors about the possibility of military escalation, especially after reports that the attackers were linked to Pakistan-based militant groups.

In stark contrast, India’s stock market has remained resilient. The Sensex recorded a 1.5% gain during the same period, a sign of strong investor confidence and the market’s ability to withstand regional tensions.

The divergence in stock market performance highlights more than just numbers—it points to differences in economic stability, investor trust, and broader financial market dynamics between the two neighboring countries.

While Pakistan’s financial system seems shaken by the developments, India’s market participants appear to be standing firm, possibly banking on the country’s global economic positioning and governance stability.

This stark comparison paints a clear picture of how each country’s financial ecosystem reacts to external shocks. As geopolitical situations continue to evolve, markets will remain a crucial indicator of both perception and policy effectiveness.

In short, while Pakistan’s markets reel under pressure, India’s stock market is showing signs of resilience—even in the face of escalating tensions.