By -
Sep 20, 2012
Indian (SENSEX) stocks fell the most in two
weeks after Prime Minister Manmohan Singh’s largest ally said it
was exiting the coalition over reforms announced last week.
The BSE India Sensitive Index, or Sensex, declined 0.6 percent to 18,391.01 at 9:28 a.m., headed for its biggest drop decline since Sept. 5. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, fell to a one-week low. ICICI Bank Ltd. (ICICIBC), the third-biggest lender by value, dropped the most in two weeks. The market was closed yesterday for a holiday.
Singh unveiled last week the biggest policy push of his previously gridlocked second term by ending a 14-month freeze in diesel prices to pare the fiscal deficit and allowing more foreign investment in aviation and retail sectors. The Sensex jumped to a 14-month high on Sept. 17. Trinamool Congress ministers will be pulled from the federal cabinet on Sept. 21, party leader Mamata Banerjee said on Sept. 18, allowing a few days that could be a window for compromise.
Losing the backing of Trinamool would put the government about 24 seats short of a majority in the lower house of Parliament, though Singh’s Congress party-led administration has in the past won expressions of support from other groups in the legislature. The proposal to allow more foreign investment in retailers stalled in December amid opposition from Banerjee’s Trinamool Congress.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
The BSE India Sensitive Index, or Sensex, declined 0.6 percent to 18,391.01 at 9:28 a.m., headed for its biggest drop decline since Sept. 5. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, fell to a one-week low. ICICI Bank Ltd. (ICICIBC), the third-biggest lender by value, dropped the most in two weeks. The market was closed yesterday for a holiday.
Singh unveiled last week the biggest policy push of his previously gridlocked second term by ending a 14-month freeze in diesel prices to pare the fiscal deficit and allowing more foreign investment in aviation and retail sectors. The Sensex jumped to a 14-month high on Sept. 17. Trinamool Congress ministers will be pulled from the federal cabinet on Sept. 21, party leader Mamata Banerjee said on Sept. 18, allowing a few days that could be a window for compromise.
Losing the backing of Trinamool would put the government about 24 seats short of a majority in the lower house of Parliament, though Singh’s Congress party-led administration has in the past won expressions of support from other groups in the legislature. The proposal to allow more foreign investment in retailers stalled in December amid opposition from Banerjee’s Trinamool Congress.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
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