11:15 - 7.05.2025

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May 7, Fineko/abc.az. Pakistan's stock market sank sharply, while India's assets stabilized after the exchange of blows between the countries in response to the recent terrorist attack in Kashmir.

ABC.AZ informs that KSE-30 index on the Karachi Stock Exchange fell by 6.1% to its lowest level since December 4, but then regained most of its losses. Indian Nifty 50 was moving in a sideways trend, fluctuating between growth and decline (falling to 0.7% at the beginning of trading). The rupee lost up to 0.4% against the dollar.

India announced military strikes against Pakistan shortly after signing a free trade agreement with the UK, which supported Indian assets amid the escalation. However, a further escalation of the situation may threaten the return of foreign investment to the Indian market, analysts warn.

Analysts believe that if further escalation is prevented, the region's markets will be able to stabilize in the short-term prospect.