Mumbai: Benchmark Sensex zoomed over 1,422 points and the NSE Nifty surged 421 points after most exit polls showed that the Narendra Modi-led NDA is returning to power with a thumping majority in the Lok Sabha elections.
The 30-share index ended 1,421.90 points, or 3.75 percent, higher at 39,352.67. During the day, the gauge hit a high of 39,412.56 and a low of 38,570.04.
In a similar movement, the broader NSE Nifty soared 421.10 points, or 3.69 percent, to 11,828.25.
A majority of exit polls Sunday forecast another term for Prime Minister Narendra Modi, with some of them projecting that the BJP-led NDA will get more than 300 seats to comfortably cross the majority mark of 272 in the Lok Sabha.
The results of the seven-phase polls will be announced on May 23.
Analysts believe the Modi's BJP retaining power will ensure a continuation in reform measures initiated during the NDA's first term.
Top gainers in the Sensex pack include SBI, IndusInd Bank, Tata Motors, L&T, Yes Bank, HDFC, M&M, Maruti, ONGC, RIL, ICICI Bank and Axis Bank, rising up to 8.64 percent.
On the other hand, Bajaj Auto and Infosys ended in the red.
The broader BSE midcap and smallcap indices ended in line with benchmarks, rallying up to 3.57 percent.
"The domestic equity markets witnessed unprecedented and remarkable surge, across all sectors and segments, after the exit polls indicated a higher probability for the current dispensation to come back to power with a clear majority," said Joseph Thomas, Head Research- Emkay Wealth Management.
"What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation and re-organisation of the banking system," he added.
Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.
The Indian rupee also appreciated by 64 paise to 69.59 against the US dollar during the day.
Brent crude, the global benchmark, was trading at 72.61 per barrel, higher by 1.40 percent.
Globally, bourses in Asia ended on a mixed note, while those in Europe were trading in the red in their respective early deals.