The Red Fort Attack And Its Possible Impact On Indian Stock Markets

The stock market is expected to react tomorrow to the blast that shook the heart of New Delhi this evening. A car detonated near Gate No. 1 of the Red Fort Metro Station around 7 PM, causing a massive fire that destroyed multiple vehicles and resulted in at least 10 fatalities. Following the incident, the Central Industrial Security Force (CISF) has issued a high alert across the country — including airports, Delhi Metro, heritage sites, government buildings and other key installations under its security cover.

As of 21:28 IST, Gifty Nifty was at 25,635.0, down 30.5 points or 0.12%.

The Medical Superintendent of Lok Nayak Jai Prakash Narayan (LNJP) Hospital told ANI that 15 people were admitted to the facility after the incident. At least eight of them died before reaching the hospital, three others are critically injured, and one is stable.

It was later reported that at least 10 people have died in the blast and 20 are injured.

Meanwhile, Union Home Minister Amit Shah spoke with the Delhi Police Commissioner, and teams from the NSG, NIA, and forensic department were rushed to the site. The Home Minister remains in continuous contact with the IB Director regarding the incident

"The NSG and NIA teams, along with the FSL, have now begun a thorough investigation. Orders have been given to examine all nearby CCTV cameras. I have also spoken to the Delhi CP and the Special Branch in-charge. The Delhi CP and the Special Branch in-charge are present at the spot. We are exploring all possibilities and will conduct a thorough investigation, taking all possibilities into account. All options will be investigated immediately and we will present the results to the public. I will be heading to the spot shortly and will also visit the hospital immediately," he told ANI.

In post on X, Prime Minister Narendra Modi wrote, "Condolences to those who have lost their loved ones in the blast in Delhi earlier this evening. May the injured recover at the earliest. Those affected are being assisted by authorities. Reviewed the situation with Home Minister Amit Shah Ji and other officials."

Earlier, authorities said they received a report of the explosion in the evening. “The call reported a car blast near Gate No. 1 of Red Fort Metro Station, which led to three to four vehicles catching fire,” an official from the Delhi Fire Department told the news agency.

After the blast, Delhi Police sealed off the area while forensic teams investigated the cause. Security was heightened across the capital, including major intersections, markets, and metro stations. The explosion, which reportedly occurred in a parked car, damaged nearby vehicles. Authorities are exploring all angles, including terrorism.

Mumbai and Uttar Pradesh were also placed on high alert. Uttar Pradesh ADG Amitabh Yash told ANI that police across the state have been instructed to increase patrols and tighten security in sensitive areas.

Delhi Police Commissioner Satish Golcha said, "Today at around 6.52 pm, a slow-moving vehicle stopped at a red light. An explosion occurred in that vehicle, and nearby vehicles were also damaged. All agencies, including FSL and NIA, are here. Some people have died, and some have been injured. The situation is being monitored. The Home Minister has also called us, and information is being shared with him from time to time."

On Monday, the stock market closed on a positive note amid optimistic global cues. On the BSE, the Sensex gained 319 points, or 0.38%, to end at 83,535.35, while the Nifty rose 82 points, or 0.32%, to 25,574.30. Most sectors saw buying during trading hours, led by IT and pharma, along with gains in metal and energy stocks. Realty and FMCG, however, closed slightly lower. The Nifty Midcap index added 0.5%, and the Small-cap index was up 0.35%.

"The move was supported by improved global sentiment, as progress toward ending the US government shutdown lifted investor confidence. Moreover, FIIs turned net buyers after six consecutive sessions of selling, and global brokerage Goldman Sachs upgrading India to 'Overweight' from 'Neutral' further added to positive sentiment," said Ajit Mishra, SVP, Research, Religare Broking Ltd.

"The index traded within a narrow range of 25,500–25,650 during the session. On the higher side, it encountered resistance near the 50 EMA while failing to sustain above the 21 EMA on a closing basis, signaling that weakness may persist over the next one to two sessions," said Rupak De, Senior Technical Analyst at LKP Securities.

He added that the index has taken support along the upper band of the falling channel on the daily timeframe, suggesting that the broader structure remains intact.

"However, a decisive move above 25,600 will be crucial to confirm the resumption of a directional upmove. Until then, the index is likely to continue its sideways consolidation phase," De added.

Red Fort Blast After Pehalgam Attack

The blast, which is yet to be officially declared a terror attack, comes months after India's Operation Sindoor against terror camps in neighbouring Pakistan. The operation followed a brutal terrorist attack in Kashmir's Pehalgam Valley, where on April 22, over a dozen tourists were killed by armed terrorists. The attack was claimed by The Resistance Front, a group affiliated with the Pakistan-based terror outfit Lashkar-e-Taiba.

The attack was followed by a precise defensive response from the Indian Armed Forces, which destroyed several terror camps inside Pakistani territory on May 7. This escalation led to a cross-border conflict between India and Pakistan till May 10, 2025.

Later, after Pakistan requested a ceasefire, Prime Minister Narendra Modi vowed to respond strongly to any future "terrorist attack."

In a televised address to the nation on May 12, Modi warned, "If another terrorist attack against India is carried out, a strong response will be given."