The Hindu Business Line : Markets may show resilience

The serial blasts could have an impact on the financial markets. "No doubt the markets will be jittery tomorrow. But in the end, the markets may show their resilience and end higher on Wednesday," said a dealer with a local brokerage firm.

"The immediate impact will most likely be negative; however, one cannot really put a number to it right now. A lot also depends on the statements made by political parties. The undertone will be nervous. However, given Mumbai's resilience one can expect a turnaround in sentiment," the business head of a leading brokerage said.

Top officials of various banks have been asked to stay back in office on Tuesday. Officials, however, refused to comment on how banking operations would be affected in the city. "It is likely that the State Government may declare a holiday tomorrow. As of now, we are more concerned about employees' safety," a top bank official said.

The first of Tuesday's blasts is said to have occurred around 6.30 p.m., after markets closed for trading on Tuesday. The benchmark Sensex closed at 10,615.35, down 69.95 points from the previous close. Some of the Indian ADRs in the US market, including Tata Motors, Infosys and Wipro, opened down on news of the serial blasts here.

Resilient nature

In 1993 and 2003, when the financial capital witnessed a series of bomb explosions, the stock markets showed its resilient nature by closing higher in the next trading session.

During the blasts on March 12, 1993, and on August 25, 2003, in Mumbai, which occurred during market hours, the Sensex closed higher the next day.

On March 12, 1993, when the bombs went off in several key locations in Mumbai, including Jeejeebhoy Towers that houses the Bombay Stock Exchange, trading came to a standstill.

But when the markets reopened for trading after the weekend on Monday, the Sensex rose by 2.48 per cent to end at 2,421.27 points, compared to the previous close of 2,361.15 points.

Similarly, the Sensex rose by 3.68 per cent or 147.66 points to 4,152.29 on August 26, 2003, a day after the blast.