Stock indices moved up strongly and rupee strengthened further above 62 a dollar as exit polls predicted that the BJP, the main national opposition party, would win the recently-held State elections, considered a precursor for the national general election in 2014. Election results would be announced on Sunday.

The rupee closed at 61.75 a dollar compared to 62.05. It touched a high of 61.52 , intra-day.

The benchmark BSE 30-share sensitive index (Sensex) closed at 20957.81 with a gain of 249.10. It touched an intra-day high of 21165.60.

Banks led the rally with a gain of 4.44 per cent followed by capital goods 3.59 per cent, realty 1.48 per cent, power 1.33 per cent, oil & gas 1.25 per cent and metal 1.11 per cent.

But healthcare (1.47 per cent), fast-moving consumer goods (0.94 per cent), information technology (0.51 per cent) and technology stocks ended in the negative territory.

However, a broad-based rally was missing, as mid-cap stocks gained only 0.13 per cent and small-cap was up by 0.39 per cent. While the BSE-100 gained 1.20 per cent., BSE-200 was up by 1.08 per cent and BSE 500 by 0.99 per cent.

On the National Stock Exchange (NSE), the 50-share Nifty surged by 80.15 pointsto close at 6241.10.

“Today, the market opened up with a huge gap, which was beyond the expected up-tick on the back of exit polls,” said Shrikant Chouhan, Head-Technical Research, Kotak Securities. The index further went on to reach a high of 6300. But it failed to cross current 52-week high 6,343 and an all-time high 6357 that has again paused the sentiment.

The reason for the appreciation of the rupee is also the same, said Mr. Chouhan, adding “market players (especially FIIs) are betting on the opposition party BJP gaining majority in the four states. If that holds true, then on Monday we think the markets will discount the outcome of the General Elections to be held in May/June 2014.”

However, he said technically the Indian currency was poised for a reversal from 61.50 levels.

It might be a higher top as compared to 60.93 achieved in October. ``If it starts weakening from here, then we may come across a quick depreciation in the rupee that will challenge 63.90 levels,” he added.

Although the markets opened on a higher note, said Mr. Chouhan, “actual buying is still missing as the rally was sentiment-driven and sellers stayed away”.

More In: Markets | Business