Pakistani stock markets witnessed a sharp decline on Thursday as reports of an imminent strike from India are speculated.

The Karachi Stock Exchange (KSE) on Thursday closed at 39,771 points, noting a decline of 569 points. Dawn reports indicate that small investors, who contribute to a major portion of the market, ran in panic resulting in an overall 1.41% fall.

Arif Habib, former Karachi Stock Exchange chairman stated that this panic was caused by the hype created in Pakistani media about the recent terror attack in Uri, Jammu and Kashmir. Many channels broadcasted that Indian troops had moved forward towards the Line of Control (LoC).

It was reported on Wednesday that Pakistan International Airlines (PIA) had stopped blocked flights to the Gilgit-Baltistan region which added more fuel to the rumours.

The Indian subcontinent continues to be tense ever since the terrorists stormed an army camp in Uri on Sunday where 18 Indian soldiers were martyred.

India on Thursday called Pakistan a “terrorist state” and accused it of carrying out “war crimes” against Indians through its “long-standing policy” of sponsoring terrorism, hours after Pakistan Prime Minister Nawaz Sharif raked up Kashmir issue at the UN General Assembly session.

In a strong rebuttal, India said the terrorists designated by the UN continued to roam Pakistan’s streets freely and operate with State support.