Benchmark indices are down more than 0.5 percent on concerns that Reserve Bank of India (RBI) governor Urjit Patel may resign today due to differences with the central government.
The rupee is down on a weaker note and has dropped to $ 74 per dollar. The Indian currency fell to 74.13 against the US dollar in daily trading, losing its previous close to the greenback by 73.67.
BECOMES THE RBI GOVERNOR TERMINATE TODAY?
The markets will closely follow the decision of the Reserve Bank of India governor, Urjit Patel. The gap between the Indian central bank and the government has widened and could cause the Reserve Bank of India (RBI) Governor to consider resigning, sources said on Wednesday.
There was an irreversible collapse between RBI governor Urjit Patel and the government, the media reports said. All options were on the table.
Around 150 companies, including Larsen & Toubro, Tata Motors, Lupine, Vedanta, Canara Bank, United Spirits, Dabur India and Adani Power, are expected to announce their quarterly results later today.
At the macroeconomic level, investors will look forward to eight Infrastructure Industries Index data and the September fiscal deficit later in the day, and Nikkei PMI Manufacturing data due on Thursday.
Asian stocks broke away from their 20-month lows to make light gains on Wednesday thanks to a recovery on Wall Street, though investors remained cautious after a harsh October month of losing trillions of dollars in global equity markets.
The broadest index of the MSCI index for Asia-Pacific outside Japan increased 0.05 percent, but was on course to fall 11 percent this month. Australian equities rose 0.1 percent, the South Korean KOSPI 0.35 percent and the Japanese Nikkei 0.5 percent.
Wall Street's three stock indexes rose more than 1% on Tuesday, helped by strong gains in chip and shipping stocks as investors took advantage of lower prices following the recent sharp pullback on equities.
(with Reuters input)