Key benchmark indices sharply pared early losses in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 92.28 points or 0.26% at 34,867.44. The Nifty 50 index was down 11.50 points or 0.11% at 10,476.95. 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.

Investors are looking forward to the state election results today, 11 December 2018. Ongoing trends suggest that Congress heading for a big win in Chhattisgarh, well ahead in Rajasthan, in Madhya Pradesh it has a small lead over the BJP. MNF is leading in Mizoram. TRS is leading in Telangana.

Broader market recovered. Among secondary barometers, the BSE Mid-Cap index was up 0.90%. The BSE Small-Cap index was down 0.50%.

The market breadth, indicating the overall health of the market, turned positive from negative. On BSE, 1142 shares rose and 878 shares fell. A total of 104 shares were unchanged.

Metal shares declined. Tata Steel (down 2.76%), NMDC (down 2.19%), JSW Steel (down 1.33%), Jindal Steel & Power (down 1.24%), Steel Authority of India (down 1%), Vedanta (down 0.99%), Hindustan Copper (down 0.88%) and Hindalco Industries (down 0.85%), edged lower. Hindustan Zinc was up 0.24%.

FMCG shares were mixed. Marico (up 2.72%), Godrej Consumer Products (up 2.63%), Procter & Gamble Hygiene & Health Care (up 2.52%), Colgate Palmolive (India) (up 2.06%), Nestle India (up 1.06%), Bajaj Corp (up 0.71%) and Dabur India (up 0.12%), edged higher. Tata Global Beverages (down 0.18%), Britannia Industries (down 0.27%), GlaxoSmithKline Consumer Healthcare (down 0.32%), Hindustan Unilever (down 0.52%) and Jyothy Laboratories (down 0.58%), edged lower.

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.