Markets opened substantially weak and the BSESENSEX was down 533 points on Tuesday morning. This was after the resignation of RBI Governor Urjit Patel on Monday evening and the election trends, counting for which began in the morning. Market digested the results and the resignation and closed with decent gains of 190 points. Bond yields stayed unchanged.

Markets recovered and were able to overcome the twin events of the resignation and the poor show by BJP. This is not necessarily the end of the road for the ruling party. It is a wake-up call and there are six months to address the issues. One is likely to see some quick measures to address the issues in the coming days.