Benchmark indices pared all early losses to end with robust gains on Tuesday as investors shrugged off Urjit Patel’s shock exit from the RBI and dismissed jitters over state election results. Short-covering, along with supportive global cues and chances of Bharatiya Janata Party (BJP) retaining power in Madhya Pradesh, buoyed the Indian stock exchanges after a volatile trade session, with the S&P BSE Sensex closing 190 points higher.

The 30-share Sensex climbed 190.29 points, or 0.54 per cent, to end at 35,150.01, after falling over 500 points during the day. Similarly, the broader NSE Nifty rose 60.70 points, or 0.58 per cent, to 10,549.15.

The Sensex had plunged 714 points Monday in its worst session in two months on pre-poll jitters.

READ | Assembly election results 2018 LIVE updates

Initially, both the key indices — S&P BSE Sensex and NSE Nifty50 — had a gap-down opening. They subsequently shed over 530 points and 150 points, respectively, as investors were spooked on the surprise resignation of RBI Governor Urjit Patel on Monday evening. The currency had plummeted 110 paise after, trading at 71.81 per US dollar, down 49 paise.

The sentiments had turned bearish as early election trends showed BJP in a neck and neck race with the Congress in the three out of five states, including Madhya Pradesh.

However, the prospects of BJP retaining power in MP coupled with short covering and bargain buying by investors supported the gains on the indices.

Top gainers that led the recovery included Yes Bank, Sun Pharma, Asian Paints, SBI, Axis Bank, ITC, M&M, Kotak Bank, Coal India, TCS and ONGC, rising up to 7 per cent.

READ | Elections 2018: Who will Madhya Pradesh go with finally?

Meanwhile, top losers were Hero MotoCorp, Bharti Airtel, HDFC Bank, L&T and HUL, falling up to 1.58 per cent.

The rupee pared some early losses after Finance Secretary A N Jha said the government was likely to make an announcement regarding Urjit Patel’s successor as RBI governor.

Index-wise, the Sensex closed at 35,150.01, higher by 190.29 points or 0.54 per cent from the previous close of 34,959.72 points.

It opened at 34,584.13 and has so far touched an intra-day high of 35,207.33 and low of 34,426.29 points.

The Nifty50 ended the day’s trade at 10,549.15 points, higher by 60.70 points or 0.58 per cent.

“Indian markets rose after making a higher intra-day bottom from 10.40 a.m. onwards once there was clarity on the state election results. Market participants felt that the performance of the ruling alliance was better than expected in MP and Rajasthan,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.

“Positive global markets also aided sentiments. Short-covering along with absence of large selling led to recovery in the markets. PSU Banks saw buying in anticipation of a liberal RBI governor.”

Meanwhile, till last reports came in, the Congress was leading in the closely contested Madhya Pradesh with a thin margin. The grand old party is convincingly leading in the BJP-ruled Rajasthan and Chhattisgarhm, while the TRS forged ahead in Telangana and the MNF in Mizoram.