After the declaration of war with Afghanistan, there has been a huge decline in the Pakistani stock market. On February 27, Pakistan’s Main Stock Exchange Karachi-100, or KSE-100, fell nearly 2%. However, later it calmed down a bit. This big fall in Pakistani stock market came when Pakistan’s Defense Minister said that Pakistan has now openly joined the war against Afghanistan. After this there were reports of war between the two countries. Pakistan opened fire on Afghanistan, and Afghanistan retaliated, leading to a massive selloff in the stock market.
The Indian stock market also declined due to increasing geopolitical tension. Sensex fell 961 points, and Nifty closed down 317 points. In the Pakistani stock market, the biggest decline was seen in the shares of auto assembly, cement and commercial banks. The KSE-100 index fell 3,081 points, or 1.82 percent, to 165,811 during trading. Later it improved significantly and in the afternoon it fell 0.5 percent to 168,062. The biggest decline was seen in automobile assembly, cement, commercial banks, fertilizer and oil and gas exploration stocks.
A few months ago there was reconciliation between the two countries
There was peace between Afghanistan and Pakistan only a few months before the war, but now war has broken out between the two countries. According to Pakistani officials and Afghan government spokesman Zabihullah Mujahid, Pakistan has carried out strikes in Kabul, Kandahar and several north-eastern provinces in southern Afghanistan, while Afghanistan has carried out strikes in Islamabad. The situation between the two countries now seems to be becoming serious.
There was a big fall in the Indian stock market also. The BSE market fell heavily on Friday amid rising tensions between the US, Iran and Afghanistan and Pakistan. The market capitalization of the Indian stock market decreased by about ₹5 lakh crore on Friday. Many heavyweight stocks also fell sharply. Banking and other indices including FMCG also came under pressure.
