Indian stocks logged heavy losses on Monday, December 10. Market participants were downbeat about exit polls from regional elections held in several states, as seen through the perspective of the coming general elections in May and assess the prospects for the ruling party of Prime Minister Narendra Modi. According to preliminary results, the Bharatiya Janata Party lost the elections in Rajasthan, one of the states where the elections were held. However, the final vote count takes place on Tuesday. Meanwhile, rising oil prices amid extension of the OPEC+ agreement negatively affected oil refinery stocks. The news flow was negative, as Asian benchmarks trended predominantly lower, while European indices have also been trading in the red. In sector terms, financial names enjoyed the weakest demand. Recapping the indices, the Nifty 50 sank 1.92% to 10,488.45, while the BSE Sensex closed 2.00% lower at 34,959.72. By 10:21 GMT, the USD/INR currency pair edged up 0.04% to 71.405, while EUR/INR advanced 0.93% to 81.4755. Meanwhile, the 10-year government bond yield widened to 7.559%. As noted above, the session’s worst performers included regional banks. Lenders Kotak Mahindra Bank, ICICI Bank and HDFC Bank plunged 6.4%, 1.7% and 0.9%, respectively. Diversified product manufacturer Reliance Industries demonstrated a significant decline, plunging 3.8%. The daily chart shows that the BSE Sensex has been approaching the lower end of Bollinger Bands, while the Slow Stochastic Oscillator has traded near oversold territory. In view of the above, further downside potential is limited. $SENSEX, S&P BSE SENSEX INDEX / D