The Pakistan Stock Exchange has taken a free fall ever since the inflation data has been revealed for the January, recording a 14.56%, highest in 12 years. Benchmark KSE-100 slipped below the 40,000-mark for the first time since 3rd December 2019.KSE-100 index lost approximately 846 points throughout the session and closed at 39,296 points.In the first nine sessions of the current year, the index gained nearly 2,483 points, giving a return of 6.10 percent. The resulted in the total gain for Fiscal Year 2020 being recorded at a high of 27.48 percent, making Pakistan Stock Exchange one of the Best performers. However, since then the index has lost 3,921 points or 9.07 percent, making the return for 2020 negative by 3.53 percent. KMI-30 Index declined by 1,660.97 points or -2.60pc to end at 62,250.69, while the KSE All Share Index decreased by 522.47 points, closing at 27,520.35. Out of the total traded shares, only 38 advanced while 276 declined.The overall market volumes fell from the previous session and were recorded at 180.77 million The volume chart was led by Hascol Petroleum Limited, followed by Unity Foods Limited and Maple Leaf Cement Factory Limited. The scripts had exchanged 15.36 million, 11.65 million and 9.62 million shares, respectively. Sectors that dragged down the included oil & gas exploration with 139.67 points, banking with 124.94 points and oil & gas marketing with 86.03 points. Among companies Engro Corporation Limited led the losses losing 53.57 points, followed by Nestle Pakistan Limited losing 47.30 points and Oil and Gas Development Company Limited losing 44.72 points.Sectors that tried to pull up the index include Tobacco with 33 points and Textile Spinning with 1 points. Among companies, most points added to the index was by Pakistan Tobacco Company Limited which contributed 33 points followed by Muslim Commercial Bank with 11 points, Habib Metropolitan Bank Limited with 4 points.Meanwhile the negative sentiments in the stock market prevailed as investors continue to speculate over Govt-IMF negotiations. After the conclusion of talks on technical level, Pakistan has begun a policy level negotiations with the International Monetary Fund (IMF), as Pakistan seeks third installment of $450 million loan. During negotiations the proposal for increase in electricity and gas prices will be discussed. Whereas, there is also the possibility of introducing a new slab for the power sector. The decision of bringing in additional taxes of Rs300 billion or presenting a mini budget will be made during the policy level talks as well.