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Shares dip 0.59% on concern of early polls

Shares dip 0.59% on concern of early polls
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First Published: Thu, Aug 23 2007. 04 13 PM IST
Updated: Thu, Aug 23 2007. 04 13 PM IST
Indian share prices fell 0.59% on Thursday on concern of early polls linked to a row between government allies over a controversial nuclear deal with the US, dealers said.
They said the fall bucked the trend in other Asian markets which rose after the Bank of Japan decided to keep interest rates unchanged.
The benchmark 30-share Sensex index fell 84.68% to 14,163.98.
“The markets fell early afternoon, reacting to political events and rumours. We expect volatility to continue as local political tension continues,” said a dealer with brokerage Jamnadas Morarjee.
India’s ruling Congress party coalition, in power for three of its five-year term, and its communist allies are at loggerheads over a civilian nuclear accord with the US, with neither side willing to back down.
Mumbai: The Sensex briefly turned negative in afternoon trade on Thursday on political concerns, but then rebounded more than 1% in a just few minutes.
At 12:58 p.m. (0728 GMT), the 30-share BSE index was up 1.15% at 14,412.48, after falling to a low of 14,241.14 just four minutes earlier, at which point it was down 0.05 percent.
The market had been up more than 2% in morning trade.
Traders are waiting on the outcome of a meeting of the Communist Party of India’s (Marxist) central committee over the government’s proposed nuclear energy deal with the United States.
If the communist allies of the ruling coalition decide to pull their support, the government will be reduced to a minority and that could trigger fresh elections.
The stocks markets continued their upward march today with the benchmark Sensex surging 306 points on sustained by funds, encouraged by firming global trend.
The BSE-30 share index, which had gained 260 points in the previous trading, added another 306.27 points to 14,554.93 in the first five minutes of trading.
The wide-based National Stock Exchange’s Nifty rose 96.70 points to 4,249.85.
Marketmen said reports of firming global markets boosted trading sentiments here.
Cement, metal and reality stocks led the rally in the opening session.
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First Published: Thu, Aug 23 2007. 04 13 PM IST
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