The market was trading with modest gains in mid-afternoon trade, tracking positive opening in European shares. At 14:17 IST, the barometer index, the S&P BSE Sensex, was up 123.48 points or 0.35% at 35,083.20. The Nifty 50 index was up 41.35 points or 0.39% at 10,529.80.

Intraday volatility was high. The trading sentiment was dented in early trade after the Reserve Bank of India Governor, Urjit R. Patel, resigned from his post last evening citing personal reasons. However, the market bounced back amid the outcome of the assembly polls in five states.

Ongoing trends suggest that Congress heading for a big win in Chhattisgarh, ahead in Rajasthan, in Madhya Pradesh it has a close fight with the BJP. The Mizo National Front (MNF) is leading in Mizoram. Telangana Rashtra Samithi (TRS) is leading in Telangana.

Among secondary barometers, the BSE Mid-Cap index was up 1.33%. The BSE Small-Cap index was up 1.04%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1484 shares rose and 801 shares fell. A total of 149 shares were unchanged.

Most realty shares rose. D B Realty (up 6.56%), Anant Raj (up 3.71%), Housing Development and Infrastructure (HDIL) (up 2.23%), DLF (up 1.56%), Indiabulls Real Estate (up 1.42%), Mahindra Lifespace Developers (up 1.3%), Parsvnath Developers (up 0.83%), Sobha (up 0.51%), Prestige Estates Projects (up 0.43%), Phoenix Mills (up 0.22%) and Omaxe (up 0.09%), edged higher. Peninsula Land (down 0.4%), Sunteck Realty (down 1.47%), Godrej Properties (down 1.69%), Unitech (down 1.91%) and Oberoi Realty (down 2.15%), edged lower.

Most power generation stocks rose. Jaiprakash Power Ventures (up 3.13%), Tata Power (up 2.91%), Adani Power (up 2.55%), Reliance Power (up 1.31%), Torrent Power (up 0.92%), JSW Energy (up 0.84%), NTPC (up 0.37%) and NHPC (up 0.19%), edged higher. Reliance Infrastructure (down 0.08%), CESC (down 0.44%), GMR Infrastructure (down 1.01%), edged lower.

State-run Power Grid Corporation of India was up 0.08%. State-run Coal India was up 1.53%.

Meanwhile, the Winter Session of Parliament began today. The nearly month-long session will continue till the 8th of next month. 45 bills and one financial item will be taken up during the session. The Session will have 20 sittings. On the first day, Lok Sabha and Rajya Sabha were adjourned for the day after paying tributes to its sitting and former members who passed away after the Monsoon Session.

Overseas, European stocks were trading higher Tuesday, as the world's two largest economies sought to push forward with the next stage of trade talks. Chinese Vice Premier Liu reportedly said Tuesday that he had been in discussion with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, with the aim of de-escalating a global trade war.

Back in Europe, overall sentiment remained relatively fragile amid deepening political turmoil over the U.K. government's proposed Brexit deal. Prime Minister Theresa May abruptly postponed a parliamentary vote on Monday, sending sterling down to 21-month lows.

Asian shares were mostly lower on the back of a volatile session on Wall Street which saw the Dow recover from a 507-point drop.

US stocks closed higher Monday as major indices bounced back from earlier losses as renewed confidence in the strength of the US economy offset lingering worries over the US-China trade dispute.

Investors are increasingly focusing on the December 18-19 Federal Reserve meeting, where the central bank is widely expected to raise interest rates. Comments from Fed Chairman Jerome Powell will be in the spotlight.