SRINAGAR: Shares of Jammu and Kashmir Bank tumbled nearly 9 per cent on Wednesday, following the devastating terror attack in Pahalgam that claimed the lives of 26 civilians, mostly tourists. The incident has sent shockwaves through the Valley’s tourism-driven economy and rattled investor confidence in key regional sectors.
The attack, carried out on Tuesday afternoon in the Baisaran meadow of Anantnag district, has sparked widespread security concerns, leading to a sharp selloff in tourism-linked stocks. As of 11:10 am, JK Bank’s stock was trading at Rs 103.78, down 8.6 per cent on the Bombay Stock Exchange. The bank’s counter saw heavy trading volumes, with over 16.1 million shares exchanged across BSE and NSE by mid-morning, significantly above its two-week average.
With over 80 per cent of its branches located in Jammu and Kashmir and Ladakh, JK Bank remains highly exposed to regional disruptions. The attack has triggered fears of operational challenges and a potential slowdown in local economic activity, particularly in tourism, one of the region’s mainstays.
Tourism-linked sectors bore the brunt of the market reaction. Travel firms have reported a wave of cancellations, and airlines and hotel stocks also traded lower. SpiceJet and IndiGo fell by 1.6 per cent and 0.5 per cent, respectively, while major hotel chains like Indian Hotels, Lemon Tree Hotels, and Chalet Hotels posted losses between 1 and 3 per cent.
The broader market showed resilience, with the Sensex and Nifty continuing their upward momentum. But for JK Bank and others closely tied to the region’s economic fortunes, Wednesday marked a sobering reminder of how quickly gains can evaporate in the face of terror.
