On April 30, the KSE-100 fell sharply by 3.09% in a single day, shedding 3,545 points and closing at 111,326.57—its steepest decline in recent weeks. Heavyweight stocks such as LUCK, ENGROH, UBL, PPL, and FFC led the sell-off, together pulling the index down by over 1,100 points.
Meanwhile, on May 2, the index bounced back, gaining 2,785 points or 2.5% to 114,119. However, analysts cautioned that this could be a temporary recovery or a “dead-cat bounce” unless tensions between the two neighbours begin to ease.
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India responds to Pahalgam attack
The April 22 attack, allegedly carried out by Pakistan-backed terrorists targeting tourists at the Baisaran meadow in Pahalgam, has triggered strong retaliatory steps from India. In response, New Delhi suspended the Indus Waters Treaty, closed the Integrated Check Post at Attari, ordered a reduction in diplomatic staff at High Commissions, and granted the armed forces complete operational freedom to determine the nature and timing of retaliatory actions.
Prime Minister Narendra Modi told the top defence leadership that the armed forces have full autonomy in choosing their response, including targets and strategy.Also Read: HDFC Bank, SBI Life among 10 largecap stocks that earned upgrades in last 1 month. Check revised target price
Military escalation
Defence sources said the Indian Army responded swiftly to multiple ceasefire violations along the Line of Control (LoC), including those opposite Kupwara and Poonch districts on the nights of April 26–27 and April 27–28. Small arms firing by the Pakistan Army was met with effective retaliation.
On the Pakistani side, military deployments have reportedly increased, including air defence and artillery units positioned at forward locations near the Indian border.
The Directors General of Military Operations of both countries spoke via hotline earlier this week to address the ceasefire violations. India is said to have issued a stern warning to Pakistan over continued provocations.
Meanwhile, Pakistan’s Ambassador to the United States, Rizwan Saeed Sheikh, appealed to President Donald Trump to help de-escalate the crisis. Citing Kashmir as a major global flashpoint, the envoy called on Washington to mediate, Newsweek reported.
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