Mkt erases gains, Sensex ends 10 pts down on trust vote talks
Mumbai: After rising around 129 points in early trades on Tuesday, the BSE benchmark Sensex gave up gains to end 10 points lower, dragged down by losses in Infosys, SBI and RIL, amid political talks of a no-confidence motion on FDI issue in Parliament.
After snapping a six-day losing run yesterday, the Bombay Stock Exchange 30-share Sensex resumed up in line with firm trends in global markets and improved further to a high of 18,467.91 -- a rise of 128.91 points.
However, the market slowly frittered away gains to finally close at 18,329.32, a drop of 9.68 points on profit-booking.
The Sensex lost the initial momentum on fall in Infosys (1.46 percent), SBI (1.39 percent) and RIL (1.27 percent) despite gains in M&M (3.25 percent), HDFC (2.02 percent) and Tata Power (1.81 percent).
A day after CPI-M rejected her party's proposal to bring a no-confidence motion against UPA government, Trinamool Congress chief Mamata Banerjee on Tuesday said she has no hesitation in supporting a left-sponsored no-trust move.
While there were clear indications from opposition JD (U) that it is not inclined to the idea of such a vote, the government made it clear that it was not afraid of facing any challenge in Parliament.
"We are not not afraid. We have the numbers", Home Minister Sushilkumar Shinde, who is also the Leader of the House in Lok Sabha, said.
Analysts said investors adopted a cautious stance ahead of the Winter session of Parliament where government is planning to introduce key bills and use it as an opportunity to showcase its resolve.
The 50-share NSE Nifty index moved up marginally by 0.15 points to 5,571.55, snapping straight seven session of losses.
Asian and European markets displayed a mixed trends as Euro-zone troubles grabbed investor attention after Moody's downgrade of France's AAA rating and before a decision on financial aid for Greece.