The 30-share Sensex opened on a strong footing and rose to new intra-day high of 23,572.88 points. It settled for the day at 23,551.00, a new record at closing, by gaining 556.77 points or 2.42 per cent. Its previous record closing high was 22,994.23 reached on Friday.
Of the 30 BSE Sensex scrips, 25 led by ITC, HDFC Bank, Reliance Industries and L&T rose, while just five ended lower. Banking, capital goods, oil and gas, auto, IT and auto shares were in demand, while pharma sector counters were under some pressure.
The NSE Nifty, comprising 50 shares, zoomed by a whopping 155.45 points, or 2.27 per cent, to close at all-time high of 7,014.25. The broader index touched intra-trade record high of 7,020.05 points, surpassing previous record of 6,871.35 on Friday.
"Markets were on a fire as optimism increased in favour of BJP winning majority in Lok Sabha elections 2014," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1,268.78 crore on Friday as per provisional data from the stock exchanges.
Market experts said positive global cues and overall optimism also boosted the buying sentiment, lifting the indices to to their lifetime high levels.
Similarly, the rupee surged past the 60 level against the dollar and was quoting at 59.73 in late afternoon trade. The domestic currency had closed at 60.04 on Friday.
"Gains in benchmark indices were also supported by strong buying by retail investors in small and mid-cap stocks", said Rajiv Malik, a Delhi-based stock broker.
The BSE Oil and Gas index rose 3.07 per cent, the best gain among sectoral indices. The Power sector index rose by 2.98 per cent and Auto index by 2.88 per cent.
Midcap index ended 2.42 per cent higher and the small-cap barometer by 0.51 per cent at 7,632.29.
Shrikant Chouhan, Head- Technical Research, Kotak Securities: On Monday the market opened close to the previous closings around 6880, however, quickly got converted into explosive up to 6975 levels and later on it closed above the psychological level of 7000. The market is moving upward mainly on the back of likely positive outcome on the day of Exit poll. However, such move in frontline and index stocks is increasing the valuation gap between mid-size stocks and frontline stocks. In case if the outcome of the event comes as per expectations, then we can expect massive buying into mid cap stocks. In the short term technically the nifty has broken monthly highest, which was at 6870 that should lift the index to 7200 in next one or two days. We like core economy related stocks but we also focusing on Technology stocks to buy as they are available at decent valuations along with positive trend in global markets. On the down side 6870/6850 might be the strongest level to hold bears.
Indian shares hit second straight record high on exit poll bets
* India VIX at 5-year high ahead of exit polls
* BSE index gains 2.42 pct; NSE ends 2.27 pct higher
* India's NSE index breaches 7,000 points for 1st time
(Reuters) Indian shares surged to their second consecutive record high on Monday as blue-chips such as Larsen & Toubro jumped on rising hopes that exit polls would show the Bharatiya Janata Party and its allies winning a majority in the elections.
The benchmark BSE index rose as much as 2.52 percent to a record high at 23,572.88, while the broader NSE index rose as much as 2.35 percent to a life high of 7,020.05, surpassing its previous record hit on Friday.
The optimism comes even as exit polls by media organisations - due to be released after 1830 India time on Monday (1300 GMT) once the last votes are cast - have proven unreliable in the past. Actual results for India's five-week long elections are due on Friday.
A win for a BJP-led coalition is widely seen as setting the stage for a revival in confidence, investment and growth as Asia's third-largest economy steers through a rough patch.
India's NSE index has surged 18.74 percent since Narendra Modi became the BJP candidate on Sept. 13, as the opposition party is perceived by markets as being more business friendly at a time when the economy is growing at its slowest pace in a decade.
"Markets got a wind of exit poll showing a clear majority for the BJP-led allies, which got extrapolated as better growth prospects for India," said Deven Choksey, managing director at K R Choksey Securities.
The BSE index ended up 2.42 percent at 23,551, while the NSE index ended 2.27 percent higher at 7,014.25, adding to their over 3 percent gains on Friday.
Gains were broad-based, with 25 out of 30 listed companies on the benchmark BSE index posting rises.
However, risk was also seen increasing as NSE's volatility index, or India VIX, hit its highest intraday level since March 11, 2009, before ending 1.6 percent lower.
Also on watch, consumer price inflation data due later in the day, the last one before the central bank's next policy review on June 3.
Domestic-oriented shares led the rally, with the NSE bank sub-index hitting a record high. State Bank of India Ltd gained 3.2 percent, while Larsen & Toubro Ltd rose 3.3 percent.
Infrastructure shares also gained, with Ambuja Cements up 2.1 percent, while state-run power equipment maker Bharat Heavy Electricals Ltd surged 2.4 percent.
Reliance Industries Ltd gained 3.1 percent after the company and its partners in a gas block said on Saturday they were taking the Indian government to arbitration seeking implementation of higher gas prices.
However, United Spirits Ltd fell 2.8 percent after it agreed to sell its Whyte & Mackay scotch whisky unit to Emperador Inc in a 430 million pound ($729 million) deal, a valuation that was seen as lower than estimates by some analysts. For additional stocks on the move double click
FACTORS TO WATCH
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* Shares cautious on Ukraine; China,India lead gains
* Foreign institutional investor flows