Live Updates: DMK pullout a drama, says Jayalalithaa

2:50 pm: The Sensex is down 273.39 points or 1.42 percent at 19019.81, and the Nifty slips 86.90 points or 1.49 percent at 5748.35.

2:22 pm: Trinamool Congress (TMC) will back DMK on Sri Lanka Tamil issue. "The UPA has no moral right to govern, it is a minority government. TMC will back parliamentary resolution if it comes. TMC won't object to the word genocide either. If there's a race for PM, Mamata is our PM candidate. No NDA, no UPA, we will go alone in the polls," says TMC MP Sultan Ahmed.

2:06 pm: Parliamentary Affairs Minister Kamal Nath: We are ready to discuss the Sri Lankan Tamil issue. The process of consultation is on.

2:04 pm: Rajya Sabha adjourned till Wednesday.

2:03 pm: Kamal Nath in Lok Sabha: There's no last date for India to take a position. We are open to discussion. In the Rajya Sabha MPs demand a resolution on Sri Lanka, raise slogans "we want justice".

2:02 pm: Uproar in Rajya Sabha over Sri Lanka issue.

1:58 pm: Nitish Kumar on DMK and Sri Lanka Tamil issue: It's an international matter but sentiments need to be respected. The Congress knows the tricks on how to stay in power and excels in handling such situations

1:53 pm: Tamil Nadu CM Jayalalithaa say 'DMK pullout a drama'.

1:50pm: Mayawati says, "Will continue to support UPA government. There is no question of withdrawing support and cannot call this a minority govt."

1:43 pm : The Sensex was down 246.06 points or 1.28 percent at 19047.14, and the Nifty fell 82.90 points or 1.42 percent at 5752.35. (Full market update)

1:10 pm: DMK Rajya Sabha MP Vasanthi Stanley says that the window of negotiation with the UPA is still open. "We are not here to destabilise the government, we are sure government will look at our demand. There is no divorce from the UPA, only an attempt to explain our position," says Vasanthi.

12:53 pm: DMK calls for an emergency executive committee meeting on March 25.

12:45 pm: BJP leader Rajiv Pratap Rudy: "The credibility of DMK has always doubtful. The fact is that no UPA ally want to go for elections with the burden of the Manmohan Singh government. The government is in minority ever since Trinamool Congress left. The government is taking its last breath and will collapse on its own soon."

12:42 pm: "The DMK has still not sent the letter to the President, so the party hasn't withdrawn support. We will continue to support the UPA government," says Samajwadi Party Rajya Sabha MP Ram Gopal Yadav.

12:39 pm: The Cabinet Committee on Security to meet at 4.20 pm. Likely to take up Sri Lanka Tamil issue.

12:34 pm Sources say BJP is not in favour of a country specific resolution. The language of the resolution should avoid words like "genocide" and instead "human rights violation" is acceptable to the party, says sources.

12:35 pm: The government is likely to call all-party meet to discuss Sri Lanka issue.

12:23 pm: Lok Sabha adjurned till 2 pm amidst uproar.

12:23 pm: Parliamentary Affairs Minister Kamal Nath: The government is concerned about the developments in Sri Lanka, the government is ready for discussion in the House.

12:22 pm "There is a statement being circulated about the majority of the government in the Lok Sabha," says BJP MP Yashwant Sinha.

12:20 pm: The DMK has 18 MPs in the Lok Sabha and five ministers in the Union Cabinet. The party wants the Centre to vote against Sri Lanka.

Don't miss: How numbers stack up in Lok Sabha now

12:10 pm: Finance Minister P Chidambaram says that according to media the DMK President has said that he will reconsider his decision depending on the resolution. He says consultations have begun on the resolution on Sri Lanka. "Karunanidhi is a senior leader and we have taken note of his statement. We respect his statement. DMK's requests are under consideration," he adds.

12.06 pm: The Sensex is down 225.54 points or 1.17% at 19067.66, and the Nifty down 67.05 points or 1.15% at 5768.20.

12:00 pm: Consultations have begun on Sri Lanka resolution: Chidambaram.

11:50 am: The government is stable, will stay in power: Chidambaram.

11:44 am: The UPA could call all-party meet to decide on Sri Lanka resolution

11:40 am:  The Sensex collapses 325.71 points or 1.69 percent at 18967.49 while the Nifty fell 94.70 points or 1.62% at 5740.55.

11:22 am: If the government passes a resolution in Parliament before Friday (March 21) condemning the Sri Lankan government, DMK is willing to reconsider its decision. The DMK ministers will resign today or tomorrow. The Centre is not doing enough for the Tamil cause, says Karunanidhi.

11:20 am: The Sensex crashed 240 points at 19052.51 while the Nifty slipped 75.20 points at 5760.05. However, despite a repo rate cut of 25 basis points (bps) by the Reserve Bank of India in its monetary policy review, the market was not fazed. The bond market was also flat. 

11:10 am: DMK ministers pull out of UPA. DMK ministers are likely to resign soon to protest against alleged war crimes in Sri Lanka. The DMK has five ministers in the Union Cabinet.

DMK chief M Karunanidhi says, "DMK has decided to pull out of UPA alliance."