Benchmark indices are set to rally on Tuesday, following the big victory of the BJP in the Uttar Pradesh and Uttarakhand assembly elections.The markets would be closed for trade on Monday on account of Holi and would now react only on Tuesday.

The Sensex closed at 28,946 points and the rally is now likely to sustain for at least another 500 points. The belief now is that the Narendra Modi government would now be able to take foward the reforms process ahead. The state elections was largely built as a semi finals, ahead of the central government elections in 2019. The BJP had lost the state elections in Delhi and Bihar, after which it was a must for the Narendra modi government to win UP.

Those looking to buy now, maybe slightly late, given the possibility of a sharp rally on Tuesday. It maybe better for investors to wait and then buy before the markets settle down once again.

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