Pakistan stock market: The Karachi Stock Exchange 100 (KSE 100), the benchmark index of the Pakistan stock market, surged over 9% on Monday, May 12, as a ceasefire with India boosted the investor sentiment, sparking a one-hour trading halt.
Pakistan’s stock exchange halted trading on Monday for an hour, according to an exchange notification, a Reuters report stated.
According to data available on Bloomberg, KSE 100 index jumped almost 9100 points or 8.9% to 116,640.94 as of 10.20 am IST. This comes after strong gains of nearly 4% were seen in Friday’s trading session. With today’s gains, the Pakistan benchmark index has again turned positive on a year-to-date (YTD) basis.
The ceasefire between India and Pakistan, first announced by US President Donald Trump on Saturday, came after four days of missile strikes, drone incursions, and artillery battles across the Line of Control (LoC). India and Pakistan agreed to halt all military actions with effect from the evening of May 10.
However, some ceasefire violations were observed from Pakistan’s end on the night of May 10. However, on the night of May 11, the ceasefire seemed to be holding between the two countries, lending confidence to investors both in the Indian stock market and the Pakistan stock market.
Indian stock market today
The Indian stock market also recorded sharp gains on Monday, May 12, rallying almost 3% in intraday trade today.
The BSE Sensex jumped over 2300 points to the day’s high of 81,830. Meanwhile, its NSE counterpart, the Nifty 50, hit the 24,738 level, gaining over 700 points.
“The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying which has been sustained for sixteen continuous days except last Friday when the conflict escalated. Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
“There are rumours of an impending US deal with China on trade, but details are yet to come. If a deal materialises, that would be good for the global economy. But from an Indian perspective, that would be slightly disappointing since we were expecting a trade deal with the US ahead of many nations, including China,” Vijayakumar added.
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