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Wednesday, June 18, 2008

Indian shares fall after nuclear deal talks delayed:

MUMBAI (Reuters) - Indian shares fell more than 1 percent on Wednesday as investors worried about political uncertainty after a meeting between the government and its communist allies to break a deadlock over a nuclear deal with the United States was postponed.

At 1:18 p.m. the 30 share BSE index was down 1.15 percent or 180.51 points at 15,516.68, after it had opened firmer.

The 50-share NSE index was 0.8 percent lower at 4,614 points.

'This was a crucial meeting and now it has been postponed, investors are quite nervous,' a trader said.

Nilotpal Basu, a senior communist leader, told Reuters the meeting had been delayed for a few days, while television channels said it had been rescheduled for June 25.

Sources had said the government had wanted to try to persuade the communists during the meeting to at least allow it to conclude negotiations with the International Atomic Energy Agency.

The communists have opposed the deal that could meet some of the country's energy needs, saying it compromises India's sovereignty and security and have threatened to withdraw vital support from the ruling coalition."

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