The Nifty ended the day higher by 80 points, while the Sensex gained 240 points (provisional) in trade on hopes that the BJP would be able to form the next government at the centre and push economic growth under Narendra Modi. At one stage the Sensex had rallied as much as 440 points, but, gave up gains on profit booking.
Among the top gainers in trade today were the banking stocks which rallied substantially. India's largest private sector lender ICICI Bank was up more then 6 per cent, while HDFC Bank gained more then 4 per cent in trade.
PSU banking stocks were also in the limelight with Canara Bank, Union Bank and Bank of Baroda all rallying more then 3 per cent in trade.
Software stocks were were weak in trade as the rupee made substantial gains against the dollar. Among the other Nifty losers in trade were Dr Reddy's Labs, Cipla and ITC.
Heavyweight, Reliance Industries was also among the gainers rallying almost 2 per cent in trade.
Mid cap stocks also showed smart gains in trade. Reliance Capital, Oriental Bank, Jubilant Food, Crompton Greaves and Voltas were among the gainers.
Jubilant Lifesciences hit the lower end of the circuit filter in trade today after reports that one of its plants in the US had received a US FDA warning letter.
Meanwhile, markets in Asia ended the day on a weak note following robust US data, which raised worries over the QE3 tapering fears.