The Congress(I) today withdrew its support to the seven-month-old United Front Government headed by Mr. I.K. Gujral and staked its claim to form an alternate “secular” Government at the Centre. Following this, Mr. Gujral met the President, Mr. K.R. Narayanan, and submitted his resignation. Earlier, the Union Cabinet had authorised Mr. Gujral to take appropriate action in the event of the Congress withdrawing support. The decision to withdraw support to the Government was taken “unanimously” by the Congress(I) Working Committee. The party’s President, Mr. Sitaram Kesri, met Mr. Narayanan and handed over a three-page letter containing the CWC decision and detailing the reasons for the withdrawal of support.

Share prices dip in kerb

Share prices fell steeply in the kerb trading on Friday following the Congress (I) withdrawal of support to the UF Government led by the Prime Minister, Mr. I.K. Gujral. ITC again led the fall as it was traded around Rs. 563 in the kerb deals against the official close of Rs. 580 on the BSE. In the kerb deals, SBI was quoted at Rs. 213.50 against the official closing of Rs. 220 and Reliance was traded in the range of Rs. 152-53 after it closed at Rs. 158.75 on the BSE on Friday.

RBI intervention pulls up rupee

For the third time this week, the rupee slipped to a new all-time low against the dollar touching 38.85/90 in Friday morning trade, prompting an immediate intervention by the RBI. The rupee opened at 38.60/70 and within a few minutes moved down to 38.85/90. However, the RBI stepped in immediately and the rupee regained some lost ground and edged back to the opening levels.

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