By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex and Nifty fell on Monday, retreating from 19-month highs, as recent outperformers such as HDFC Bank
However, shares in organised retailers such as Pantaloon Retail India Ltd
Dealers say the probability of a December rally will increase if the vote goes in favour of the ruling Congress-led alliance. If not, the newfound optimism around recently announced reform measures is seen petering down.
"If the FDI vote goes through, it will trigger another round of rally in the markets," said V.K. Vijayakumar, investment strategist at Geojit BNP Paribas.
If FDI in retail is cleared then the government will be in a position to initiate a large number of other reforms, including insurance and pension, he added.
The BSE index fell 0.18 percent, or 34.58 points, to end at 19,305.32 after gaining 4.5 percent in the previous four sessions.
The broader NSE index fell 0.15 percent, or 8.90 points, to end at 5,870.95, finding resistance near the psychologically important 5,900 level.
HDFC Bank Ltd fell 2.4 percent on profit-taking after its shares rose 6.35 percent in the previous three sessions.
Among other recent outperformers, telecoms operator Bharti Airtel
Stocks considered defensive such as ITC Ltd
ITC fell 0.8 percent, while Hindustan Unilever Ltd
Among stocks that gained, retailer Pantaloon gained 9.5 percent ahead of the vote in parliament.
Shares in India's Jet Airways
Shares in Maruti Suzuki India Ltd
Utility vehicle maker Mahindra & Mahindra
(Additional reporting by Manoj Dharra; Editing by Prateek Chatterjee)