Indian markets recouped sharp early losses by mid-morning Tuesday as election results in three states were not as poor for the ruling party as some expected, but anxiety about the central bank governor's resignation kept sentiment subdued.
Markets initially plunged in reaction to Reserve Bank of India Governor Urjit Patel's unexpected resignation late on Monday, which shocked many investors.
"Patel's resignation bodes poorly for macroeconomic and financial stability in India," Fitch Solutions Macro Research, a unit of Fitch Group, said in a note on Tuesday.
The broader NSE stock index tumbled as much as 1.47%, but at 0752 GMT was up 0.5%. The Indian rupee had dropped 1.5% to a one-month low of 72.4625 per dollar in early trade, but pared most losses to be 71.76 versus its previous close of 71.35.
Source: VC Circle