Terror attacks in Mumbai (Bombay) have left the Indian financial capital in fear after gunmen shot 104 people in the gunfire. The responsibility of the attacks has been taken by Deccan Mujahideen, an Islamic militant group. It is still unclear till when the stock market will remain closed.
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The attacks clearly are an attempt to tarnish India’s image in the global market. With the rising insecurities of the profitable investors, India was one country that they could bank on without having to worry about the losses. The Indian finance minister Mr. Chidambaram announcing that India is nowhere near recession was a soothing assurance. However, that was short lived with the recent attacks on the upscale hotels.
People planning to relocate to Mumbai may reconsider their plans. Short-term investors may resort to similar means too. Terrorists singling out the westerners have only helped fuel further insecurities amongst foreigners.
New investors will definitely balk, but old ones won’t make any hasty decisions for exit.
Stocks market may be shut for the moment. However, city of Mumbai has seen many terror attacks in the past. It has always bounced back to its normalcy. After all, the stock market can’t afford to remain shut for long. It should resume soon.
Via: CNN
Market is a microcosm of society. If society suffers, market suffers too. When a society is healthy and prosperous, there would be healthy market trends. With such gross attacks on humanity from the department of the books, market will bleed its share of blood.