India’s stock market has showcased its superior structural strength amidst escalating India-Pakistan tensions. While the Nifty50 remained resilient, Pakistan’s KSE 100 experienced a dramatic 9.5% drop. India’s equity market ranks among the top five globally, with a staggering market capitalization of approximately $5 trillion.
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In stark contrast, Pakistan’s Karachi Stock Exchange (KSE) holds a significantly smaller capitalization of $20.36 billion.
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India’s market structure is robust, characterized by over 5,000 listed companies and strong participation from mutual funds, retail investors, and systematic investment plans (SIPs). This solid domestic backbone contributes to its market stability.
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India’s market resilience amid tensions
On the contrary, Pakistan’s exchange lists merely 500 companies, which makes it particularly vulnerable during political unrest. It is also more sensitive to market sentiments and has lower liquidity.
India’s economic fundamentals demonstrate substantial strength. The country maintains forex reserves of $688 billion, vastly overshadowing Pakistan’s $15.25 billion. This economic fortitude further underpins India’s market stability.
The TOI Business Desk is a dedicated team of journalists at The Times of India, committed to delivering the latest and most relevant business news globally. They provide valuable insights and updates, ensuring readers are well-informed about the ever-evolving business landscape.
