Benchmark indices surged in trade with the Sensex ending the day with mammoth gains of 1422 points, following exit poll predictions of a clear majority for the ruling NDA. The Sensex ended the day at 39,352 points, while the Nifty rallied 421 points to close at 11,828 points.
This was the best gains for the Sensex and the Nifty in 10-years.
Some exit polls predicted that the BJP on its own would be able to garner a majority, which bought a huge relief to investors.
High beta names from the metal and banking space were leading gainers. Almost all of the Nifty stocks gained in trade. Indiabulls Housing led gainers from the Nifty with the stock ending 12 per cent higher, while SBI jumped more than 7 per cent.
IT stocks were a lot more subdued than the overall markets, thanks to a sharp gain in the rupee. TCS, was up, while Infosys was down 1 per cent or so.
Shares of Yes Bank, which had hit a 52-week low on Friday, gained substantial ground. The shares ended up 7 per cent at Rs 144. Shares in Anil Ambani group companies saw solid buying support with Reliance Capital up near 6 per cent. Other group companies like Reliance Infrastructure too saw strong buying support.
The Market breadth, indicating the overall strength of the market, was good. On BSE out of total shares traded of 2565, 1846 shares advanced, while 580 shares declined and 139 were unchanged.
Meanwhile, the rupee too gained sharply in trade and was last seen trading at 69.52, against a closing of 70.22. The gains seen in the currency were almost to the tune of 70 paise. The bond market also saw a positive sentiment with the benchmark 10-year debt droppping one basis point to 7.36 percent.
European markets were trading with losses, led by the German DAX and the French CAC. Analysts are cautioning against over exuberance and staggered buying given slowing economic indicators.