Pakistan stock market crashes after reports of surgical strike by India

Zee Media Bureau

New Delhi: Share markets of Pakistan fell on Thursday after India said it had conducted "surgical strikes" on suspected militants preparing to infiltrate from Pakistan-ruled Kashmir, escalating tensions between the nuclear-armed neighbours.

Across the border, the benchmark Pakistan Stock Exchange fell 0.37 percent, or 147 points, to 40,207 following the border strikes, reversing early gains of some 500 points on OPEC`s decision to cut oil output.

Analysts in both countries expect tensions would eventually ease given the stakes involved even if India has departed from its characteristic stance of strategic restraint.

The strikes come after the Indian government accused Pakistan-based militants of launching a deadly assault on an army base in Kashmir earlier this month that killed 18 soldiers.

India has been on a diplomatic drive to isolate its archrival and fellow nuclear power since the raid on September 18, the worst such attack in more than a decade.

Kashmir has been divided between India and Pakistan since gaining independence from Britain seven decades ago. The countries have fought two of their three wars over the territory.

With Agency Inputs