Mumbai Sensex drops as Indian govt wins vote on retail reform
City Index December 7, 2012 5:15 PM
<p>The Mumbai Sensex has lost ground as the Indian government wins a crucial foreign investment vote.</p>
The Mumbai Sensex has slipped in trading today (December 7th) on news the Indian government has won the upper house vote in favour of opening the retail sector to foreign competition.
This is a move to help stimulate business expansion, boosting the Asian country's struggling economy.
When the results were announced, it was revealed the government were victorious with 123 members of parliament voting in favour of the motion, while 109 were against.
The win came after the regional Bahujan Samaj Party's 15 MPs voted against the government, which does not have a majority in the parliament's upper house.
Now, more foreign direct investment will be allowed through, while the triumph will allow the Congress party to push ahead with further reforms to drive growth.
At 11:35 GMT, the Mumbai Sensex retreated by 0.3 per cent to an index value of 19424.1 points.
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