Around 12pm, the index shed 1370.56 points, or 1.71 per cent, to stand at 78,747.33 points from the previous close of 80,117.89 points. Finally, the index closed at 78,539.18 points, decreased by 1578.71 points or -1.97pc, from the previous close.

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The bears dominated the trading floor after the federal government announced on July 15 that it had decided to ban PTI and was seeking Article 6 proceedings against former prime minister Imran Khan, ex-president Dr Arif Alvi, and former National Assembly (NA) deputy speaker Qasim Suri.

Experts say that investors were worried about the increased political tension resulting from the potential ban on the main opposition party amid geopolitical pressures.

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They said that a healthy result season may resume investors’ confidence going forward, if the political environment remains calm.

They attributed the bearish momentum to political uncertainty and concerns on further rate cut in July’s monetary policy committee (MPC) meeting.