Dalal Street ignores terror strike yet again

It was business as usual on Dalal Street on Thursday,a day after serial blasts rocked the financial capital,leaving at least 21 peopled killed and over 100 injured. Ignoring the terror attack the fifth major strike in the city in the last eight years the Bombay Stock Exchange Sensex closed marginally higher by 22 points,showing resilience,depth and vibrancy of the capital market. The Sensex had closed higher on the next trading day after terrorists struck in the city on the previous four occasions.

Stock markets opened on a nervous note with the Sensex initially going down by about 150 points,but later surged 207 points only to erase gains in fag-end selling to close at 18,618.20,up 22.18 points or 0.12 per cent. The NSE Nifty gained 14.35 points at 5599.80. The early morning loss was not because of the Wednesdays terror attack alone,but largely because of weak cues from other Asian markets. After a brief downtrend,the market recovered smartly from the low to gain more than 100 points during the day. Contrary to expectations,marketmen discounted the bomb blasts in Mumbai and showed their confidence and enthusiasm pulling the market higher despite weak openings in European markets, said Shanu Goel,senior research analyst,Bonanza Portfolio.

According to Amar Ambani,head of research,IIFL,as has happened so many times in the past,markets managed to overcome the trauma of yet another terror strike. The overall sentiment is unlikely to be dented by the latest bomb blasts. Fundamentals of the economy are quite sound despite some moderation lately, he said.

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Dalal Street had always cocked a snook at terror attacks in Mumbai. After the November 26,2008,attack on Taj and Oberoi hotels,railway station and a Jewish centre in Mumbai,the Sensex closed higher by 66 points,0.73 per cent,at 9,092.72 points in the next trading session (November 28,2008). On July 11,2006,serial explosions on suburban trains killed 187 people and injured more than 800,but Sensex closed with a gain of 315 points,at 10,930.09 points the following day.

The Sensex gained around 200 points a day after a terror attack killed many people in Gateway of India and Zaveri Bazar on August 25,2003. After the attack in Ghatkopar,on July 28,2003,the Sensex moved up 0.7 per cent on the next trading day.