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Bulls lead fightback: Sensex up

india Updated: Jul 13, 2006 13:25 IST

ONE DAY after blasts ripped through its lifeline, Mumbai's investors proved that the city's economic heart is alive and kicking. In an act of economic defiance, they voted with their wallets, scoring a telling point against terror in the process. To be precise, 315 points -- the gain notched up by the Sensex on Wednesday.

History shows that every time terrorists have struck Mumbai, the markets have rebounded immediately. On March 12, 1993, the day serial blasts rocked Mumbai, the Sensex had ended at 2,377 points. When trading re-opened on March 15, it jumped to 2,394.

On August 25, 2003, when bombs went off at the Gateway of India, the Sensex had ended at 4,004. The next day, the index finished at 4,152.

Darshan Mehta of Anagram Finance says: "Cities, especially economic capitals, have learnt to fight back and look terror in the eye." He gives the example of London. "Last year, just before the blasts rocked London, the London Stock Exchange (LSE) was trading on low volumes," he says. "As if in defiance, after the blasts, the volumes rose and the LSE ended the day in the black. I guess Mumbai has reacted in much the same way."

Deven Choksey of KR Choksey said: "The excellent results posted by Infosys were the driving factor, keeping the markets buoyant, along with a fresh flow of FIIs into the bourses." He says it only shows that bomb blasts or rain, globally, India is a strong economic player and the "trend is here to stay".