The Pakistan Stock Exchange (PSX) faced a massive drop as tensions with India caused panic among investors. On Wednesday morning, the KSE-100 index lost more than 3,600 points, falling from 114,872 to 111,192 points within hours. Analysts linked this steep fall directly to fears of a possible military conflict with India. Topline Securities CEO Muhammad Sohail said that news about a potential Indian strike in the coming days triggered the sell-off. AKD Securities’ Awais Ashraf added that the situation worsened after the Information Minister’s statement warned of an Indian attack within 24 to 36 hours. This warning created uncertainty in the market and hurt investor confidence. Chase Securities’ Yousuf Farooq agreed that the market reacted negatively to the minister’s remarks. He noted that such strong statements always impact trading sentiment. Similarly, Sana Tawfiq of Arif Habib Limited said the main reason behind the stock crash was geopolitical tension, not economic data or company performance. On Tuesday, India gave its military full freedom to respond to the Pahalgam incident. Soon after, Pakistan’s Information Minister Attaullah Tarar revealed credible intelligence about India’s military plans. He strongly denied the allegations, calling India’s actions reckless and warned that any aggression would receive a firm response.