Amid rising anticipation of a stable BJP-led coming to power at the Centre, stocks markets put a record breaking show on Monday with the Bombay Stock Exchange (BSE) benchmark Sensex ending the day at a new closing high of 23,551 and the National Stock Exchange (NSE Nifty) at 7,014.25.
Though the lok Sabha poll results are to be announced on May 16, the markets on Monday rose mainly on the anticipation of exit polls predicting an overwhelming majority to the BJP-led coalition at the Centre.
Intra-day, the Sensex rallied to an all-time high of 23,572.88, surpassing previous high of 23,048.49 and the Nifty touched 7,020.75, breaking the earlier high of 6,871.35.
Shares of refinery, power, auto, capital goods, banking, FMCG and metal firmed up sharply on good buying support from investors and operators. Consumer Durable, IT and Teck sectors also firmed up in line with other sectors. Healthcare, however, declined on mild selling.
The Sensex resumed higher at 23,031.11 and firmed up further to an all-time high of 23,572.88, before settling at 23,551.00, showing a sharp rise of 556.77 points or 2.42 per cent from its last weekend's record closing of 22,994.23.
The NSE 50-share Nifty crossed 7,000 level for the first time in the history to touch 7,020.75. It finally ended at 7,014.25, showing a smart gain of 155.45 points or 2.27 per cent. It surpassed previous closing high of 6,858.80.
Analysts said that owing to positive sentiments in global equities there was a surge, though the driving factor was the anticipation that exit polls would show BJP on the winning side (which they did show later during the evening).
The nine-phase long lok Sabha polls end today and the first set of exit polls are expected to be out soon.
Sentiments were boosted on account of strong capital inflows into the Indian equity market. last Friday, a net Rs 1,268.78 crore was pumped as per provisional data from the stock exchanges.
Most Asian stocks ended higher after Chinese President Xi Jinping reportedly said the nation needs to adapt to a new normal in the pace of economic growth. Key benchmark indices in South Korea, Hong Kong and China finished higher in 0.43 per cent to 2.08 per cent range.
Indices in Japan, Singapore and Taiwan eased by 0.35 per cent to 0.91 per cent.
Indications of a higher opening in US index futures was also the another factor driving the rise in overall sentiment. Back home, major gainers from the Sensex pack were Coal India (7.04 per cent), HDFC Bank (4.59 per cent), Tata Motors (4.09 per cent), Hero Moto (4.01 per cent), Maruti Suzuki (3.99 per cent), ITC (3.86 per cent), Sesa Sterlite (3.38 per cent), Gail India (3.35 per cent) and SBI (3.27 per cent).
larsen & Toubro (3.27 per cent), Reliance Industries (3.17 per cent), ONGC (3.06 per cent), NTPC (2.49 per cent) and Bharti Airtel (2.48 per cent) also notched up good gains.However, Sun Pharma dropped 1.73 per cent and Cipla by 1.26 per cent.
Meanwhile the rupee rose to nearly ten-month high of 59.51 against US dollar but frittered away all the gains to end one paise down at 60.05 per dollar on late demand of the American currency.
At the Interbank Foreign Exchange (Forex) Market, the rupee resumed higher 59.98 per dollar as against the last weekend's level of 60.04 per dollar.
It firmed up further to 59.51 per dollar on initial selling of dollars by banks and exporters on the back of sustained foreign capital inflows into domestic equity market.
There was buoyancy in the stock markets ahead of exit polls later that are anticipated to show a stable government coming to power at the Centre when counting ends on May 16.
The rupee had strengthened to 59.45 in intra-day trade on July 29, 2013.
However, the rupee failed to maintain initial gains and closed marginally lower at 60.05 per dollar, registering a loss of one paise. It moved in a range of 59.51 per dollar and 60.12 per dollar during the day.
Banks and exporters initially preferred to reduce their dollar position in view of persistent foreign capital inflows into the equity market.
"The USD/INR pair, however, witnessed recovery with rumours that RBI was buying dollars," said Admisi Forex India in a report.