On Monday morning, all eyes will be glued on to Dalal Street. The serial blasts in Bangalore and Ahmedabad have rocked the nation, and there's a growing sense of unease. How will the trading community react when the market opens for trading?

The mood among the trading community is that terrorism is unlikely to cause much panic on Monday. Instead, brokers hope the market would show the kind of resilience it did many times in the past when terror struck.

While there could be some initial jitters when trading opens on Monday, most brokers feel the impact will not last long as focus will shift to broader issues - the domestic and the global economy - which affect investment. In the near term, the market is likely to remain volatile in the wake of a few major events like RBI's monetary policy review and expiry of futures & options contracts on Thursday. Besides, the progress of the monsoon and corporates quarterly numbers will also be keenly watched, according to brokers.

"The Ahmedabad blasts will have some impact on the market sentiment, but one has to take such events in isolation. While these are short-term hiccups, what should matter in the long term is the health of the economy and corporate fundamentals," said Angel Broking CMD Dinesh Thakkar.

"The market had built some confidence on hopes that the UPA government will push through reforms process after surviving the trust vote. However, last week's serial blasts in Bangalore and Ahmedabad may affect sentiments, at least in the short term," said Religare Enterprises Group COO Shachindra Nath.

In the past, the Indian stock market has displayed remarkable resilience in the face of terrorist attacks and natural calamities like the tsunami and floods. For instance, the Sensex had jumped 316 points to end at 10,930 on July 12, 2006, the day after serial bomb explosions ripped through Mumbai's railway network, killing more than 180 and leaving 460 injured.

Again, when the Bombay Stock Exchange (BSE) building itself was targeted by terrorists way back on March 12, 1993, the trading community was back in business the very next day. The Sensex rose 60 points on March 15, reflecting the fighting spirit of the city. These are uncertain times - politically and otherwise - and more than ever, traders are expecting the market to do a repeat of 1993.

BSE on high alert

The Bombay Stock Exchange (BSE) has been on a high alert after Saturday's serial blasts in Ahmedabad. The security personnel have been in constant touch with the police even though they have not received any communication from the police on any threat issued by any terrorist outfit, said a BSE spokesperson.

The official also told ET that the exchange has beefed up surveillance inside the BSE building and installed high-tech devices to detect any destructive substance. A state-of-the-art scanner has been installed at the entrance of the Jeejeebhoy Tower and 70 closed circuit (CC) cameras are also put up to monitor activity inside the building. BSE is planning to further tighten the security by installing 70 more CC cameras in the coming days, said the spokesperson.