Mumbai:Indian equity indices traded on a firm note on Monday after most exit polls showed a BJP-led NDA getting a comfortable majority in the now concluded general elections.
The Sensex advanced over 1,079 points during the afternoon trade hitting an intra-day high of 39,010.
Markets favour a stable governments and until Sunday owing to uncertainty over the general elections, trading was marked by heavy volatility.
On Monday, the Indian VIX or the volatility index saw a sharp drop of over 18 per cent. The index came down to 22.9 from the 28-29 levels as investors cheered the exit polls.
“Post the exit polls we can expect Nifty to again test its recent high before May 23. Fresh breakout into the 12,000 to 12,500 zone would depend on whether BJP gets majority on its own,” said Rusmik Oza, Head of Fundamental Research, Kotak Securities.
At 12.19 p.m., the Nifty was trading at 11,723.50, up 316.35 points or 2.77 per cent. It opened at 11,651.90 from its previous close of 11,407.15.
“If exit polls come true on May 23 then we can expect a structural up move in the mid and small cap space,” Oza added.
The BSE Sensex was trading at 39,008.21 points up 1077.44 points or 2.44 per cent higher.
The benchmark Sensex opened at 38,701.18 from its previous close of 37,930.77.