Rupee, stocks impacted after Urjit Patel's resignation

Stock and currency market opened sharply lower on Tuesday as Sensex shed 500 points at the opening trade after an abrupt resignation by RBI Governor Urjit Patel and an uncertainty over the final results of assembly elections in five states.

The rupee opened weaker at 72.46 than yesterday's close at 71.33 as offshore investors appeared worried over what happened between the government and the RBI Governor. The yields on 10-year government bond rose 7.71%, the highest since Nov 27.

So far, the counting of votes for state elections showed the Congress taking an early lead in Rajasthan and Chhattisgarh and BJP in Madhya Pradesh.

Patel resigned late Monday after the close of market hours but the news evoked angry reactions from investors, former RBI Governors and the Opposition parties.

Investors feared continuity of policy may be in a limbo post the resignation. The Governor resigned after a long stand-off between the RBI and the Central government over the issue of central bank's autonomy among other things.

The stock and money markets also exhibited volatility amid a correction in the global market.