Mumbai Sensex drops as Indian govt wins vote on retail reform

<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.

Learn all about CFD trading platforms at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.