Markets in both India and Pakistan closed in the red on Thursday as tensions escalated between the two countries following a series of cross-border strikes.
In Mumbai, India’s benchmark stock indices — the Sensex and Nifty — declined by around half a percent during the day’s trade. In Pakistan, the Karachi Stock Exchange was forced to halt trading temporarily after a steep selloff, with its benchmark KSE-100 index plunging more than 6%.
There was also visible anxiety in the currency markets. The Indian rupee slipped over 1% against the US dollar — its steepest single-day fall in more than three years — amid fears of further geopolitical fallout.
Investor sentiment has turned jittery as both nations traded accusations over drone attacks, just a day after Indian missiles targeted terror-linked sites in Pakistan and Pakistan-administered Kashmir.
