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Dalal Street shows ‘care a damn’ attitude to terror strike

Mumbai: Showing resilience and a care a damn attitude towards the terror strike in the city, it was business as usual in the stock market today.

At the same time, the market participants assured the investors from the country and abroad about Indian markets’ strength and vibrancy to get over such unfortunate events.

The experts said that markets have time and again shown that such terror strikes would not have any material impact, as they cannot dent the general functioning of the economy. “Indian Markets have historically been very resilient to such unfortunate incidents. Indian Market is strong, vibrant and on a long-term growth trajectory on the back of growing GDP,” Destimoney Securities chief Sudip Bandyopadhyay said.

The country’s two main bourses — the Bombay Stock Exchange and the National Stock Exchange — today opened at their scheduled time and business was normal.
After a 145-point decline in early morning trade, the Bombay Stock Exchange benchmark Sensex bounced back soon and was seen trading with gains of over 100 points.

Analysts said that the early morning loss was not because of the last evening’s terror attack and the markets opened weak largely because of weak cues from other Asian markets.

“Yesterday’s terror attack had not much of an impact on today’s market movement. Market opened on a lower note on the back of weak Asian cues. Life has got back to normal in Mumbai,” Way2Wealth Brokers COO Ambareesh Baliga said.

“The city was not totally paralysed because of the terror attack which is why the stock market started operation on a normal note,” he noted. Recalling the serial blasts of 2008 in the country’s financial hub, Baliga said that the markets bore a dim look initially at that time, but later bounced back. “The attacks are not going to fundamentally damage anything. Historically, whenever there is these attacks, markets have generally bounced back and closed in the positive zone,” Ashika Stock Brokers Research Head Paras Bothra said.

Foreign investors are not likely to get perturbed by these kind of attacks, he added. In July 11, 2006, when explosions on passenger trains in the city killed 187 people and injured more than 800, the country’s benchmark sensitive index Sensex closed with gains of 315 points at 10,930.04 points the following day.

Similar was the case during the November 26, 2008 attack, when gunmen targeted luxury hotels, including Taj Mahal Palace & Tower and Oberoi, a railway station and a Jewish centre. In the following trading session (November 28, 2008) Sensex closed higher by 66 points at 9,092.72 points.

Home Minister P Chidambaram also said that attacks were not aimed at financial markets and that high population density were chosen as targets.

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