Key benchmarks trimmed losses after hitting fresh intraday low in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was down 341.21 points or 0.98% at 34,618.51. The Nifty 50 index was down 97.25 points or 0.93% at 10,391.20. The trading sentiment was dented after the Reserve Bank of India Governor, Urjit R. Patel, resigned from his post last evening citing personal reasons.

Investors are looking forward to the state election results today, 11 December 2018. The outcomes of the assembly elections will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana took place on 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election in Chhattisgarh Assembly was held in two phases on 12 and 20 November 2018.

The counting of votes began at 8:00 IST today, 11 December 2018. Ongoing trends suggest that Congress is leading in Rajasthan and Chhattisgarh, it is a close fight in Madhya Pradesh, TRS galloping to a lead in Telangana and Congress seems out of the race in Mizoram.

Broader market recovered. Among secondary barometers, the BSE Mid-Cap index was up 0.04%. The BSE Small-Cap index was down 0.12%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 792 shares rose and 967 shares fell. A total of 90 shares were unchanged.

Banks were mixed. Among private sector banks, IndusInd Bank (down 2.53%), HDFC Bank (down 2.39%), ICICI Bank (down 2.06%), Kotak Mahindra Bank (down 1.39%), Axis Bank (down 0.77%) and Federal Bank (down 0.12%), edged lower. RBL Bank (up 0.07%), City Union Bank (up 0.38%) and Yes Bank (up 3.84%), edged higher.

Among public sector banks, Corporation Bank (up 7.2%), UCO Bank (up 5.71%), Bank of Maharashtra (up 2.46%), Dena Bank (up 1.92%), Vijaya Bank (up 1.47%), Punjab National Bank (up 1.46%), United Bank of India (up 1.2%), Indian Bank (up 0.92%), Canara Bank (up 0.89%), Andhra Bank (up 0.76%), State Bank of India (up 0.66%), IDBI Bank (up 0.42%) and Bank of Baroda (up 0.09%), edged higher. Bank of India (down 0.06%), Union Bank of India (down 0.07%), Allahabad Bank (down 0.23%) and Punjab & Sind Bank (down 1.89%), edged lower.

IT shares were in demand on weak rupee. Hexaware Technologies (up 2.04%), Tech Mahindra (up 1.17%), MphasiS (up 1%), Oracle Financial Services Software (up 0.78%), MindTree (up 0.51%), HCL Technologies (up 0.37%), Persistent Systems (up 0.24%), Wipro (up 0.17%) and TCS (up 0.02%), edged higher. Infosys was down 0.55%.

A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.24, compared with its close of 71.32 during the previous trading session.

Overseas, 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.

Meanwhile, British Prime Minister Theresa May confirmed a decision to postpone a vote on her plan for the UK to exit from the European Union.