Markets sank yesterday on RBI, Cyprus and not because of DMK's exit: FM

Markets sank yesterday on RBI, Cyprus and not because of DMK's exit: FM New Delhi: Finance Minister P Chidambaram on Wednesday said that yesterday's market nosedive was due to what happened in Cyprus and to the Reserve Bank of India's 25 BPS rate cut announcement, and not because of the DMK's decision to withdraw its support from the UPA-II Government.

"The markets fell yesterday because of Cyprus and because of the RBI rate cut. Why do you (media) assume that the pullout of just one coalition partner would affect the markets?" he asked.

Responding to a question on whether the government was too weak to attract investments, Chidambaram said the government had its hand firmly on the wheel.

"We are a government- we have a hand firmly on the wheel, we will continue to take decisions and we will continue to push legislation. Only yesterday, the Cabinet approved the (amended version of the) Food Security Bill - we are also taking executive actions," he said.

"Is that the action of a weak government? I assure you we have the necessary majority to pass each and every bill," he added.

The DMK had pulled out of the UPA Government over the issue of alleged human rights violations of Sri Lankan Tamils .

"DMK continuing to support the Central Government under these circumstances is impossible. Even if the LTTE is vanquished, our support for the fight of Tamil freedom and human rights is not over," said Karunanidhi, while addressing the media yesterday in Chennai.

"We totally support the revolution in Sri Lanka and the rights of the Tamils, we have fought for their rights," he added.

With the pullout of the 18 DMK MPs in the Lok Sabha, the strength of the UPA Government declines from 295 to 277 in the Rajya Sabha.

The DMK has also ruled out any question of giving outside support, but said it might consider changing its stand based on the government's stand.

"If the Parliament passes a resolution before the vote in UNHRC, we might change our stand," Karunanidhi said.

Karunanidhi had earlier said India should strongly urge the establishment of a credible and independent international commission of investigation into the allegations of war crimes, crimes against humanity, violations of international human rights law, violations of international humanitarian law and genocide against the Tamil people.

The U.S.-sponsored motion puts the island nation in dock over alleged war crimes and rights violations against Tamil civilians during the final phase of the war against the Liberation Tigers of Tamil Eelam (LTTE).

The resolution is moved by the US for the second time. Last year, India had supported a similar resolution.