INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Domestic stocks plummeted and headline indices Sensex and Nifty suffered severe blows in the opening trade on Tuesday in the wake
of RBI Governor Urjit Patel's resignation, while investors appeared jittery ahead of assembly polls results
The domestic currency plunged to 72.44, its lowest level in four weeks
The early leads of assembly results indicated a tight fight between the BJP and Congress in Madhya Pradesh and Rajasthan and Chhattisgarh
was seen tilted in the favour of the Congress
Sensex plunged 500 points in the early trade, while Nifty touched 10,335.
Around 9:25 am, the Sensex kitty was 457 points or 1.31 per cent,
down at 34,502, while the Nifty was at 10,373, down 115 points or 1.10 per cent
BSE Midcap and Smallcap indices were 0.57 per cent and 0.50 per cent down, respectively
All sectoral indices were incurring losses at that time
Let's take a look at what caused pain to market.
Sudden resignation by GovernorMarket sentiment got affected after the surprised
resignation by the Reserve Bank Governor Urjit Patel on Monday, four days ahead of a crucial meeting of the board of the central bank that
could have discussed issues of simmering differences with the government
This, along with the lack of policy coordination between the RBI and the government, will mean higher India risk premium, at least in the
1.92 per cent to close at 10,488.45 points on Monday primarily due to fears of the ruling BJP getting trounced in the state elections
Tuesday.
State election resultsState election outcome will continue to keep investors cautious on Dalal Street on Tuesday
mostly discounted a poor showing by the incumbent party
The BSE Sensex on Monday settled 713.53 points down at 34,959.
Falling rupee The rupee on Tuesday plunged 112 paise to 72.44, it's
four-week low, against the US dollar following RBI governor Urjit Patel's resignation.
