The Sensex rallied 375 points, to hit a record high of 23,398 points, while the Nifty gained 106 points as markets sniffed a clear majority for the Narendra Modi led NDA.
Top gainers once again were the banking stocks with ICICI Bank, Axis Bank, IndusInd Bank and State Bank of India being the clear winners.
Other Nifty stocks that gained in ground were ONGC, IDFC and BPCL.
Shares in Andhra Bank were higher by 1.5 per cent despite the bank reporting a sharp decline in net profits. Reliance
Industries which along with its partners BP and NIKO have issued a notice of arbitration to the government of India was trading higher by one per cent.
Dena Bank was trading higher after the company reported a rise in net profits.
Nifty stocks that dropped in trade were Maruti, Hindalco and Cipla.
Mid cap stocks were also seen in action with Adani Power up 2 per cent, IFCI up 2 per cent and Unitech up almost 3 per cent.
Realty stocks also saw some buying interest with notable gainers being HDIL, DB Realty and Anant Raj.
IT Stocks were subdued in trade with TCS trading marginally lower while NIIT and MindTree were also down in trade.
Meanwhile, markets across Asia were trading with the Hong Kong's Hang Sang, Shanghai Composite and Singapore's Strait Times all higher.