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Benchmark stock indices Sensex and Nifty rallied more than 3 per cent to close at lifetime highs on Monday following across-the-board buying as exit polls predicted a massive win for the BJP-led NDA in the general elections.
The 30-share BSE Sensex soared by 2,507.47 points or 3.39 per cent to settle at a new closing peak of 76,468.78, marking its biggest single-day gain in three years.
During the day, the barometer jumped 2,777.58 points or 3.75 per cent to hit a record intra-day peak of 76,738.89.
The NSE Nifty climbed 733.20 points or 3.25 per cent to finish at 23,263.90.
During the day, it soared 808 points or 3.58 per cent to hit a fresh intra-day all-time high of 23,338.70.
A sharp rally in blue-chip stocks Reliance Industries, ICICI Bank, HDFC Bank and State Bank of India propelled the indices to lifetime high levels.
Strong GDP data also added to the buoyancy in equity markets.
Shares of all Adani Group companies continued their sharp rally on Monday, with Adani Power surging nearly 16 per cent, in line with a massive surge in the equity market.
Among sectors, PSUs, Power, Utilities, Oil, Energy, Capital Goods, and Realty indices soared up to 8 per cent.
Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls.
The counting of votes will take place on June 4.
"The markets opened at new highs today largely because of Exit polls predicting landslide victory for the BJP-led NDA.
"This will result in a positive surprise of policy continuity with higher seats for the NDA government," SAMCO Mutual Fund Fund Manager & Head of Equity Research Paras Matalia said.
Among the 30-Sensex companies, NTPC, State Bank of India and Power Grid jumped over 9 per cent each.
Larsen & Toubro, Axis Bank, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, IndusInd Bank, ICICI Bank and Tata Steel were the other big gainers.
Sun Pharma, HCL Technologies, Asian Paints, Nestle and Infosys were the laggards.
Vinod Nair, Head of Research, Geojit Financial Services, "Exit poll has activated the optimism of a memorable win for the ongoing government, PSUs had a humongous rally, in anticipation of continuation of the reform gains, triggering further re-rate."
India's economy grew by 8.2 per cent in the fiscal year that ended in March, cementing the country's position as the fastest-growing major economy in the world.
In Asian markets, Seoul, Tokyo and Hong Kong settled with gains while Shanghai ended lower.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,613.24 crore on Friday, according to exchange data.
Global oil benchmark Brent crude climbed 0.18 per cent to $81.26 a barrel.