NEW DELHI (REUTERS) - India's main opposition Bharatiya Janata Party (BJP) is unlikely to call a confidence motion in parliament after the ruling coalition lost support of a key ally, party leaders said on Tuesday.

BJP spokesman Prakash Javedka said the party viewed the pullout of the Dravida Munnetra Kazhagam (DMK) as a negotiating ploy to extract concessions from India's Congress party-led coalition.

The DMK is based in the southern state of Tamil Nadu, and has often pressured the Indian government to do more to protect Sri Lanka's minority Tamil population. It wants the Indian government to introduce stronger language into the resolution, including the use of the word"genocide".

The government has yet to give a response on what its position on the resolution would be.

Finance Minister P. Chidambaram said on Tuesday that the Congress party-led government is "stable" despite DMK's withdrawal in protest against the government's position on a United Nations resolution on war crimes in Sri Lanka.

"The government is absolutely stable," Mr Chidambaram told reporters. "There is no crisis," he added.

India's regional Samajwadi Party (SP) also said it will continue to support the Congress Party-led government.

The SP, which is not part of the coalition but supports it in parliament, said however that it would oppose plans to open up insurance and pension sectors to foreign investors.

"We will continue to support the government but we are against FDI (foreign direct investment) in insurance and pension sectors," SP leader Ram Gopal Yadav said.