
News Topical, Digital Desk : Pakistan Stock Exchange: A ceasefire has been agreed between India and Pakistan, but clashing with India has proved costly for Pakistan. In the last three days, India's counter attack has caused a lot of damage to Pakistan. Why not, when Pakistan is nowhere in front of India on any front, be it economic, tactical or strategic. Whereas Pakistan's GDP is just 350 billion dollars, which is just a fraction of India's 4 trillion dollar economy. The same disparity is seen in the stock markets of both the countries.
There is a huge difference between the Indian stock market and PSX
1 Indian rupee is equal to 3.283372 Pakistani rupees. On this basis, the total market capital of the 476 most valuable companies on the Pakistan Stock Exchange (PSX) is Rs 5.66 lakh crore. This is less than the market cap of only one large cap company of India, Infosys, which is Rs 6.26 lakh crore. The total value of PSX is slightly more than the market capitalization of Hindustan Unilever of Rs 5.48 lakh crore. The total market cap of Pakistan's benchmark index KSE-100 is Rs 3.31 lakh crore - which is less than the market cap of UltraTech Cement of Rs 3.34 lakh crore.
A little more decline would have put PSX in this category
On Friday, the Pakistani stock market surged on hopes of a bailout package from the International Monetary Fund (IMF). However, any further prolongation of this geopolitical tension would put it in the category of medium-sized Indian companies. A 10 percent decline in the Pakistani stock market would bring its market cap down to Rs 2.98 lakh crore, which is close to Titan Company (Rs 3.11 lakh crore). A 15 percent decline would bring it at par with Adani Ports and SEZ (Rs 2.82 lakh crore) and a 20 percent decline would bring it close to Power Grid Corporation (Rs 2.78 lakh crore).
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