Financial markets in both nations experienced significant reactions to the escalating tensions between India and Pakistan, albeit to wildly disparate degrees. After dropping by Rs 1.3 trillion in market value in only three days, Pakistan's stock market experienced a severe collapse on Thursday. Following the Indian drone strikes, there were significant intraday fluctuations in the KSE-100 index. Following the KSE-100 index's worst intraday swing ever, the Pakistan Stock Exchange (PSX) saw a significant decline. According to Dawn, the market capitalisation lost Rs 820 billion in a single session, and the index dropped more than 6,400 points to its lowest point. Investor panic over India's airstrikes has caused the PSX's overall market value to plummet by an astounding Rs 1.3 trillion over the last three trading days. The index fluctuated by over 10,000 points during Thursday's trading session, going from an intraday high of 1,872 points to a significant low of 8,410 points. Taking to X on Friday, the Additional Directorate General of Public Information (ADG PI) mentioned that the drone attacks were 'effectively neutralised' and the ceasefire violations were appropriately responded to. The ADG PI added that the Indian Armed Forces' successful retaliation was part of Operation Sindoor, which was initiated early on Wednesday and saw the Armed Forces destroy nine terror facilities in Pakistan and Pakistan-occupied Kashmir. “Pakistan Armed Forces launched multiple attacks using drones and other munitions along entire Western Border on the intervening night of 08 and 09 May 2025. Pak troops also resorted to numerous ceasefire violations (CFVs) along the Line of Control in Jammu and Kashmir. The drone attacks were effectively repulsed and befitting reply was given to the CFVs. Indian Army remains committed to safeguarding the sovereignity and territorial integrity of the Nation. All nefarious designs will be responded with force,” the Army stated.