The Hindu : 'Aimed at wrecking economic progress'

Online edition of India's National Newspaper
Tuesday, Aug 26, 2003

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National

'Aimed at wrecking economic progress'

By Dinesh Narayanan

MUMBAI Aug. 25 . Everything lies broken on a five-road intersection at Mumba Devi here and at the foot of the Gateway of India. Shards of glass, metal and pieces of human flesh cover the ground where powerful car bombs blew away normal life this afternoon.

The Chief Minister, Sushil Kumar Shinde, said the minds behind the blasts aimed at wrecking the city's economic progress. "There is financial improvement in the city. Investments are going up. Hotels are full of tourists. This is the moment they have chosen to hit the economic pulse of the city."

The parking lot near Gateway, where the first explosion happened, faces the heritage Taj Hotel run by the Tatas. Mumba Devi, the area where one of the bombs went off is the nerve centre of commodity and bullion trading in the city. "Idhar dar baith gaya hai (Fear has set in here)," said Suresh Hundia, president of the Bombay Bullion Association. "The next three-four days we do not expect to do much business," Mr. Hundia said.

The daily turnover of Zhaveri bazaar, the retail jewellery market off the square where the bomb went off, is nearly Rs. 50 crores. Mr. Hundia, however, believes that if the incident does not lead to more untoward events, the market would become normal in a few days.

Businessmen say they have full faith in the trademark resilience of the city. Shailesh Haribhakti, president of the Indian Merchants' Chamber, says emphatically, "The business community will fight this dastardly act with a renewed vigour. There will not be any effect on businesses. We urge the Government to tighten policing and security."The stock market reflected that mood. The 30-share Sensitive Index of the Bombay Stock Exchange fell 182 points from the day's high of 4125 after news of the explosions reached traders. The benchmark index however pared lost ground in late trade to close higher at 4004.63, indicating investors have put the day's events behind them and are ready to resume the bull run of the past week. A stock dealer said the market was overdue for a correction and today's news merely set it up. The Government's bond market too bounced back after initial panic. Dealers said news of the blasts drove down securities prices by about 75-100 paise across the board and trading was disrupted, as telephone lines were jammed. The losses were, however, recouped by late trade.

Firdose Vandrevala, chairman of the Confederation of Indian Industry, western region, said it would be business as usual in Mumbai and the rest of the country. Mr. Vandrevala, who also heads the city's chief power supplier, Tata Power, said, "It is indeed unfortunate that Mumbai city had witnessed bomb explosions. They (explosions) would not have any impact in the long run."

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