India Parliament Attack
The Parliament attack happened on 13 December 2001 in New Delhi, right
outside India’s Parliament building around 11:40 in the morning. Five
terrorists drove in with a white Ambassador car to fool the guards, they
had fake government stickers and passes on the car making it look like an
official vehicle. They also came out with AK-47 rifles, grenades, and
explosives and started firing. The gunfight went on for about half an hour.
By the end, all five terrorists were killed, but nine security staff and one
Parliament worker also lost their lives. The attack was later traced to
Lashkar-e-Taiba and Jaish-e-Mohammed, two terrorist groups of Pakistan.
The attack hit the country hard and was immediately reflected in the
stock market. The Sensex dropped more than 170 points that day (almost
3.5%), and the Nifty also fell. The value of the rupee fell compared to the
dollar, and many investors moved their money into safer places like
government bonds. There was fear of a war with Pakistan, so foreign
investors slowed down their investments. Although the panic was strong
on the day of the attack, the market did not stay down for too long.
However, within a few weeks, things started to calm down, and the
market began to recover.
The government reacted strongly. It launched Operation Parakram,
sending thousands of troops to the India-Pakistan border and the biggest
military buildup since 1971. Security inside Parliament and other key
buildings was also tightened soon after the government passed a new
anti-terror law, the Prevention of Terrorism Act, in 2002 to deal with such
threats more effectively. On the financial side, the RBI and SEBI stepped in
to keep the markets stable. They made sure banks had enough liquidity
and that traders could not panic sell too many stocks.
Times of India- [Link]
business/sensex-absorbs-terror-tremor/articleshow/[Link]?
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Pulwama Attack
The Pulwama attack took place on 14 February 2019 in Jammu and
Kashmir’s Pulwama district. Around 3:15 in the afternoon, A suicide
bomber rammed a car packed with explosives into a bus carrying CRPF
soldiers on the Jammu-Srinagar highway. The blast was so powerful that it
destroyed one of the buses completely and damaged several other areas.
In the attack, 40 CRPF jawan lost their lives. The Pakistan-based group
Jaish-e-Mohammed claimed responsibility for the bombing.
The attack shook the entire country and created fear of a possible military
escalation with Pakistan. In financial markets, investors reacted quickly.
On the next trading day, the Sensex fell by nearly 400 points in early
trade, and the Nifty also went down. On the other hand, defence related
stocks, like companies linked to arms and equipment supply, saw some
buying interest because people expected the government to increase
defence spending. Gold prices also rose, as many investors preferred it as
a safe investment during uncertainty. The market stayed shaky for a few
weeks, but it started to recover once the government and army took
careful action. After that, the priority was just to keep things steady until
the elections later that year
After the attack, the Indian government quickly acted. It spoke to other
countries to put pressure on Pakistan and stopped giving Pakistan special
trade benefits. A few days later, the Indian Air Force carried out airstrikes
on terrorist camps in Balakot across the border. Security in Kashmir was
tightened, and the government worked to stop local support for terrorist
groups. In the stock market, people were cautious at first. Traders stayed
away from risky stocks and put their money into safer options like gold
and government bonds. Once things settled down, long-term investors
began buying again, and the market gradually got back to normal in a few
weeks.
URI Attack
Uri attack on 18 September 2016 was a crucial moment in India’s approach to counter-
terrorism and its regional security. At around 5:30 A.M. IST, four heavily armed militants,
believed to be from the Pakistan-based group Jaish-e-Mohammed, crossed the Line of
Control and launched a deadly assault on the Indian Army’s brigade headquarters in Uri,
Baramulla district, Jammu and Kashmir.
The attackers targeted a rear administrative base camp during a unit changeover, using
grenades and automatic weapons to strike sleeping soldiers in tents and temporary
shelters. The attack killed 19 Indian soldiers and injured more than 30 people, some of
whom suffered serious burns from the explosion during the assault. Indian security forces
neutralized all four attackers in a rapid and intense gunfight that lasted about two and a
half hours.
An attack on Indian forces in Kashmir in almost two decades, leading to a strong reaction
from the Indian government. The government reacted with anger and determination,
making it very clear that this was not just another terror incident but a direct challenge
to India’s sovereign Officials condemned the attack and promised a “measured and
appropriate” response Pakistan denied any involvement and dismissed the claims,
further increasing diplomatic tensions, and then in response India conducted surgical
strikes on the night of 28–29 September 2016, different several terror launchpads in
Pakistan-occupied Kashmir. In this attack, Indian Army special forces reportedly killed
over 38 terrorists and their handlers. The attack and the resulting retaliation had
noticeable economic impacts