Against the backdrop of embarrassing developments for the United Progressive Alliance coalition and rumours of his resignation, Prime Minister Manmohan Singh on Friday held discussions with Congress president Sonia Gandhi and some senior party leaders, and took stock of the political situation.
On a day when the Sensex in the Bombay Stock Exchange nosedived by 258 points on rumours of the prime minister's resignation and the Neyveli fiasco following Dravida Munnetra Kazhagam's threat to pull out of the coalition, Dr Singh called on Sonia at her residence ahead of the weekly Congress core group meeting at his residence.
As speculation mounted that he was putting in his papers on the perceived image that his government was not free to take serious economic decisions, the Prime Minister's Office came out with the denial of the rumour that Dr Singh has offered to resign.
"It is totally baseless and utter nonsense," Prime Minister's Media Adviser Sanjaya Baru said, dismissing the speculation.
There was no official word what was discussed between Dr Singh and Sonia in their one-on-one meeting and the core group meeting. "We have nothing to report. It is a routine weekly meeting," was all that Defence Minister Pranab Mukherjee told reporters after the meeting.
Human Resource Development Minister Arjun Singh, Home Minister Shivraj Patil and Political Secretary to Congress President Ahmed Patel were among those who attended the meeting.
The Delhi High Court's stay on the moves for removal of All India Institute of Medical Sciences Director P Venugopal by Health Minister Anbumani Ramadoss added to the discomfiture of the government, sucked into what is seen as a controversy triggered by another Tamil Nadu ally, the Pattali Makkal Katchi.
The core group is understood to have discussed the fallout of the decision to keep on hold the disinvestment process on the economic reforms programme on the government and its image.