Markets to open gap-down following RBI governor's sudden exit

Indian markets stares at a major gap-down start on Tuesday as in a surprise move, the RBI governor Dr Urjit Patel submitted his resignation with immediate effect. Dr Patel has cited personal reasons for his resignation, but market participants are not buying that argument as the negative reaction to the news is evident with the SGX Nifty trading lower by 175 points and indicating Nifty opening below the 10,350 mark. Going ahead, market participants will keep a close eye on counting of five state election results.  
  
Majority of Asian markets are trading in the red on Tuesday as investors shrugged off a late-stage recovery on the Wall Street overnight. The Japanese stock market Nikkei 225 has shed 0.59 per cent, Hong Kong’s Hang Seng has dipped 0.25 per cent, while bucking the trend, China’s Shanghai Composite index has added 0.21 per cent.   
  
Back home, Monday turned out to be a terrible session of trading for the benchmark indices as these plunged about 2 per cent. After witnessing a disappointing start to the day, the indices struggled to recover and ended the day near the lowest point of the day. The BSE closed below the important psychological 35,000 mark and Nifty ended below the 10,500 mark. The broader indices too performed dismally in line with the benchmark indices as Nifty Mid-cap and Small-cap plunged 2.12 and 2.17 per cent, respectively. As for sectoral indices, none of the indices managed to escape the sell-off. Nifty Realty and Nifty Private Bank fell the most.   
  
After witnessing a setback in the early part of the trading session, the bulls staged a strong comeback on the Wall Street on Monday with the major averages closing in the positive territory. The Nasdaq outperformed its counterparts, registering gains of 0.74 per cent,  Dow Jones Industrial Average advanced 0.14 per cent, recovering from a 500-point slide that momentarily cracked the index below the 24,000 mark for the first time since late June, while the S&P 500 added 0.18 per cent.   
  
European markets ended the first trading session of the week on a disappointing note due to global growth concerns and Prime Minister Theresa May delaying tomorrow’s parliamentary vote on the Brexit deal. The DAX of Germany lost 1.54 per cent, the CAC of France fell 1.47 per cent and the UK’s FTSE 100 weakened 0.83 per cent.