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Mumbai Explosions May Not Damp Foreign Flows, CNI’s Ostwal Says

Kishor Ostwal, managing director of CNI Research, comments on the outlook for Indian equities after three bomb blasts hit Mumbai killing at least 10 people.

The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, rose 1 percent to 18,596.02 at the 3:30 p.m. close in Mumbai, halting a three-day decline. The explosions occured at about 7 p.m., according to the police.

“There is sufficient time to analyze the incident before the market opens tomorrow. I do not anticipate a knee-jerk reaction. Foreign institutions, who are the major drivers, do not linger on these kind of domestic issues for long. Retail investor sentiment may get affected.”

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