KSE-100 Recovers After Initial Plunge

The KSE-100 Index, a key market indicator, bounced back on Monday after experiencing a decline of over 1,000 points in early trading.

Throughout much of the day, the Pakistan Stock Exchange (PSX) saw significant selling activity, driven by investor apprehension related to increased tensions between Pakistan and India. This initially pushed the index down to an intra-day low of 113,077.66.

However, market conditions improved significantly in the latter part of the session. By 2:20pm, the KSE-100 Index had risen to 114,350.45, marking an increase of 236.52 points, or 0.21%.

The earlier downturn occurred amid media speculation about potential Indian airstrikes, following a substantial 40-minute meeting between Indian Prime Minister Narendra Modi and Air Chief Marshal VR Chaudhari on Sunday.

This meeting followed the recent attack in Pahalgam, Jammu and Kashmir.

Market participants are also keenly awaiting the Monetary Policy Committee (MPC) decision regarding the policy rate, which is expected later today.

The PSX experienced volatility during the previous week due to heightened geopolitical tensions between Pakistan and India. The KSE-100 Index decreased by 1,355.41 points, a 1.2% drop, closing the week at 114,114 points, down from 115,469 points the week before.

In global markets, Indian equities remained stable on Monday, bolstered by a reduction in global trade pressures, consistent foreign investment inflows, and a decrease in crude oil prices, all of which boosted investor confidence.

As of 10:03am IST, the Nifty 50 had increased by 0.59% to 24,487.14, while the BSE Sensex rose by 0.54% to 80,936.4.

On Friday, Indian benchmarks recorded their longest weekly winning streak in 2025, driven by renewed optimism about a possible trade agreement between India and the U.S.

Foreign portfolio investors (FPI) have been actively purchasing Indian shares for twelve consecutive sessions as of Friday, representing their longest continuous buying streak in the past two years.

According to analysts, the gains have been limited due to a somewhat subdued earnings season for the March quarter and ongoing geopolitical concerns.

This report provides an update on intraday market activity.