The KSE 100 rallied greater than 9% to 117,104 factors, after closing Friday’s session 3.5% larger. Pakistani shares had been underneath stress, and buying and selling was halted for an hour on Thursday after the benchmark index crashed 7.2% amid panic triggered by India’s Operation Sindoor.
Up to now in Could, the KSE 100 index is down 3.4%, after a 5.5% decline in April, pushed by escalating India-Pakistan tensions following the April 22 terrorist assault on vacationers in Pahalgam, Kashmir.
In the meantime, India’s Sensex and Nifty additionally surged greater than 2.7% on Monday. Nevertheless, analysts cautioned that any recent violations of the ceasefire by Pakistan may undermine the present bullish sentiment.
“India’s efforts to barter commerce offers will strengthen international enterprise hyperlinks and assist it enhance exports, bringing in regular overseas capital and enhancing competitiveness. Coupled with balanced international relationships and robust partnerships, this creates a comparatively steady funding vacation spot,” mentioned Devarsh Vakil, Head of Prime Analysis at HDFC Securities.
“The ceasefire between India and Pakistan has paved the way in which for a pointy market rally. The important thing driver will probably be sustained FII shopping for, which continued for sixteen straight days—besides final Friday when tensions spiked. Home macros like excessive GDP progress expectations, a revival in FY26 earnings, and declining inflation and rates of interest help a renewed market uptrend,” mentioned Dr. VK Vijayakumar, Chief Funding Strategist at Geojit Monetary Companies.
