Major mining stocks all retreated in the market as the swing votes of two independent MPs gave the Labor Party the necessary numbers in forming the next government, largely seen by economic and political watchers as a blow to the resource industry's vehement opposition to the controversial minerals resource rent tax.

As soon as MPs Tony Windsor and Rob Oakeshott announced their support for a Labor-led government, the S&P/ASX200 materials index moved in a roller-coaster mode, before finally settling to 12,202 at 1539 AEST, shedding only a total of 45.6 points or 0.37 percent.

Prominent resource firms which voiced out opposition to the proposed MRRT all recorded declines as Fortescue Metals Group gave up one cent of its value to end up at $4.93 while Atlas Iron Ltd shed three cents to tally at $2.17 with BC Iron losing two cents at $1.83 by the time the trading clock reached the 1544 mark (AEST).

However, Austock Securities senior adviser Michael Heffernan said that judging on the market's movements, the initial decline merely indicated some form of shocks for traders though they quickly recovered and "as it progressed, the market dropped a bit at the start but then it picked up."

Mr Heffernan said that the general sentiment of the market appears to be that of satisfaction as the mixed elements of the present composition of the new parliament pointed to a much healthier discussion of issues that matter to the economy and to the nation as a whole.

He cited Mr Oakeshott's assertions, which largely signified of "pretty clear indications that were going to take place, so we may not see anything like the peremptory mining tax for example, implemented."