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The terror attacks on Mumbai, focussed on the city’s top hotels and public spots turned the past week into a nightmarish one, not only for Mumbaikars but for all Indians. By the weekend, unrelenting action by the elite National Security Guard had secured the targeted areas, with the terrorists apprehended or killed. Will these horrific incidents dent business confidence or will it be business as usual, after this week?

The stock market has proved quite resilient to terrorist attacks across the globe in the past, whether it was the July 2006 bombings in the Mumbai suburban trains, the 2005 London blasts or the 9/11 attacks on the World Trade Centre. In the last episode, the market bottomed to a new low but reversed direction in just 8 days. This Friday’s 66-point gain in the Sensex, post-terror attacks, was accompanied by FII buying, after a steady stream of outflows in earlier sessions.

While the Indian economy and its business community may shrug off the latest episode of terrorism, these attacks, which targeted two of Mumbai’s best hotel properties, may have adverse implications for the travel industry. Tourist arrivals were already downbeat in recent months on account of the credit crisis curtailing business-related travel.

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