Stock bulls in India, Pakistan expect rebound after truce

Relief Rally Likely

- CHIRANJIVI CHAKRABORTY

STOCKS IN INDIA and Pakistan are set for a relief rally following a ceasefire agreement between the two nuclear-armed neighbours on Saturday, as investor focus shifts back to improving economic outlook.

Foreign investors, who had been on a 16-day buying streak in Indian shares until the clashes flared up Friday, may resume flows as volatility subsides. Meanwhile, in Pakistan, the International Monetary Fund's approval of $1 billion in immediate disbursement along with a new $1.4-billion plan for climate resilience will be a booster for its fragile finances.