MUMBAI, JULY 8: Bulls seem to be happy with the exit of Left parties. Dalal Street came off lower level after an initial sharp fall, shrugging off the decision of Left parties to withdraw their support to the Congress-led UPA government. Soon after the Left front announced its decision in the afternoon trade, Samajwadi Party pledged its support to the government and share prices started bouncing back on the bourses.

The BSE Sensex which was down 476 points at one stage due to the fall in global markets and fears over the stability of the government, recovered nearly 300 points when the government got the support of SP and some smaller parties, and finally closed with a loss of 176.34 points or 1.3 per cent at 13,349.65. The broader S&P CNX Nifty was down 41.45 points or 1.03 per cent at 3,988.55.

But stocks tumbled in Asia and Europe after sharp decline in shares of top US mortgage firms Fannie Mae and Freddie Mac on funding concerns that reminded of the fragility of global credit markets. In Europe, key indices in France, Germany and UK were down by between 1.2 to 1.82 per cent. In Asia, key indices in Taiwan, Singapore, Hong Kong, South Korea, Japan were down by between 1.74 to 3.94 per cent.

According to analysts, there are hopes that the government would now push for economic reforms which were earlier stalled by the Left.

RIL falls on tax fears

The Sensex fell 1.3%, but RIL fell 2.44%. Eyes have been on RIL stock ever since the Samajwadi Party demanded a tax on windfall gains made by private refiners

Open Rs 2,000

Close Rs 1,978.60