The BSE Sensex was up 298 points at 17,661 at 11.10 am IST on indications that a tie-up with the SP would strengthen the government at the centre and help it to push through reforms.
Early leads indicated that the Congress was poorly placed in Uttar Pradesh and Punjab. Among the losers were JP Associates, which lost ground on relentless selling, as it is believed that the Group stands to lose if the BSP fails to form the next government in UP.
Among the gainers included the Anil Dhirubhai Ambai group stocks that included Reliance Power and Reliance Infrastructure.
Markets are now expected to take cues from the election results at least for the next few days.