Equity markets opened strongly on Thursday as initial trends showed BJP heading towards a strong majority — in line with most exit polls.
At 9:55 a.m., the benchmark Sensex was trading at 39,833, up 722 points or 1.85%. The broader Nifty gained 214 points or 1.82% to touch 11,952.
Interestingly, India VIX index, which is looked upon as a barometer of near-term volatility, drooped over 26%.
According to traders, investor sentiment was boosted by initial trends that suggested a win for the ruling NDA.
Amid market euphoria, the rupee also appreciated 26 paise to 69.40 against the U.S. dollar in opening trade.
The 30-share index zoomed over 2% to hit an intra-day high of 39,901.59. Similarly, the broader NSE Nifty too spurted more than 2% to touch a record of 11,968.95.
In the previous session, the Sensex ended 140.41 points (0.36%) higher at 39,110.21; and the broader NSE Nifty rose 28.80 points, or 0.25%, to 11,737.90.
Top Sensex gainers in morning trade include IndusInd Bank, SBI, L&T, PowerGrid, Yes Bank, Kotak Bank, ICICI Bank, RIL, HDFC, Bharti Airtel and Axis Bank, rallying up to 7%.
Vedanta, ONGC, Bajaj Auto and Sun Pharma slipped to 1.92%.
Meanwhile, foreign institutional investors sold equity worth ₹965.02 crore on Wednesday, while domestic institutional investors sold shares to the tune of ₹157.75 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.
Brent crude, the global benchmark, was trading at 70.58 per barrel, lower by 0.58%.
(With inputs from PTI)