The S&P BSE Sensex slid around 500 points on Tuesday morning after the Congress party started to take the lead in the Assembly elections in three key states of Rajasthan, Madhya Pradesh and Chhattisgarh.
Accordingly, at 9.35 am, the Sensex traded at 34,459.72 points, lower by 500 points or 1.43 per cent from the previous close.
The Nifty50 on the National Stock Exchange traded at 10,344.40 points, lower by 144.05 points or 1.37 per cent from the previous close.
Investors also turned jittery a day after Reserve Bank of India (RBI) governor Urjit Patel resigned in a surprise move.
Read | Urjit Patel resigns as RBI Governor; PM Modi hails him as economist of very high calibre
Reserve Bank of India (RBI) Governor Urjit Patel resigned on Monday in an abrupt move that followed days of a bitter row between the central bank and the Central government over surplus reserves.
Patel, whose term was to end on September 2019, thus became the first RBI Governor since 1990 to resign from his post.
Among sectors, banks, automobiles, energy, consumption, and metals are the top losers.
The Indian rupee began trading on a negative note on Tuesday, falling over 1.5 percent at 72.46 per US dollar.
Indian markets nosedived earlier on Monday as a result of the exit poll results and weak global cues. Equity benchmarks extended their losses, with the Sensex plunging 600 point slower.
(With agency inputs)