Following an initial wave of selling pressure, bullish momentum returned to the Pakistan Stock Exchange (PSX), driven by strong buying in the banking sector. The benchmark KSE-100 Index surged by over 1,600 points during trading on Tuesday.

The market started off negatively, influenced by escalating political tensions domestically, which caused the KSE-100 Index to drop to an intra-day low of 97,361 points.

However, the stock market made a significant recovery, buoyed by substantial purchases in the banking sector. By 11:15 AM, the KSE-100 Index had climbed to 99,722.66, reflecting an increase of 1,642.88 points or 1.68%.

Earlier, analysts pointed to the negative sentiment stemming from heightened political unrest, as clashes between government forces and opposition groups escalated into violence.

The Pakistan Army was deployed on Monday night following confrontations between supporters of Pakistan Tehreek-e-Insaf (PTI) and police, which resulted in the deaths of four Rangers and two police officers as PTI convoys entered Islamabad.