PSX leaves Indian Sensex behind as investors show stronger confidence

KARACHI: While India’s Sensex has struggled to maintain momentum since May 2025, Pakistan’s stock market has surged to new heights, reflecting a sharper rise in investor confidence and stronger market sentiment.

Indian market stalls below lifetime peak

India’s benchmark Sensex opened May 2025 at 80,501 points, recovering from April’s dip to 73,137.90. Over the following weeks, the index showed some promise, peaking at 82,530.74 on May 15. Yet, the gains proved short-lived as the market slipped again to 80,737 by June 3.

Despite a modest rebound towards the end of June, when the Sensex touched 84,058.90, the index failed to surpass its all-time high of 85,836.12 set in September 2024. Through July and into August, the Sensex moved within a narrow range, opening the current month at 80,599.91 and standing at 81,566 as of August 25.

The performance, while steady, has left analysts questioning the strength of investor sentiment in India, particularly when compared with the striking trajectory of Pakistan’s market.

Pakistan’s record-breaking rally

In contrast, the Pakistan Stock Exchange (PSX) has enjoyed an extraordinary run since May, consistently breaking records and climbing to unprecedented levels. The benchmark KSE-100 index opened May at 114,113 points and, after an initial brief dip, began a sustained rally.

By June 11, the index had risen to 124,352.68. A month later, on July 11, it had surged past 134,299.76. The momentum continued into August, with the KSE-100 closing at 146,929.84 on August 11, and reaching 150,591 by August 20. In intraday trade last week, the market even surpassed the 151,000 mark, the highest in its history.

Market experts say this rapid rise reflects robust investor confidence, supported by improving macroeconomic fundamentals, structural reforms, and Pakistan’s growing international credibility.

“The PSX’s performance demonstrates how quickly investor sentiment can turn when supported by stability and reform. The journey from 100,000 to 150,000 points in just 10 months is the fastest in the exchange’s history,” an analyst noted.

Investor confidence: Pakistan vs India

The divergence between the two markets has become particularly stark. For India, the Sensex has not been able to break its previous lifetime high in nearly a year, suggesting investors remain cautious. In Pakistan, however, the stock market’s rapid climb underscores a clear vote of confidence in the country’s economic direction.

Analysts argue that while India remains a large and diversified economy, Pakistan’s market is currently the more dynamic story in South Asia, drawing attention for its pace of growth and historic milestones.

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