The BSE benchmark, the Sensex ended 351.61 points or 1.58% higher at 22,628.84 points, while the NSE's Nifty ended 104.10 points or 1.56% higher.
According to experts, markets are likely to rally further. "Our FY15 target for Sensex is at 24,000. Regardless of the outcome of elections, we see the economy recovering and markets gaining further. We are also at the end of the rate tightening cycle. The long-term view remains positive," said Gaurav Mehta, VP, institutional equities, Ambit capital.
Among sectoral indices, BSE Realty (2.79%), BSE Auto (2.25%), BSE Oil & Gas (1.79%) were the major gainers. Hindalco (4.40%), Tata Motors (4.24%) and ICICI Bank (3.25%) were the major gainers on the 30-share Sensex.
Asian indices showed a mixed trend. Hang Seng (0.28%), Straits Times (0.02%), Jakarta Composite (0.49%) and Taiwan Taiex (0.23%) ended in the green. Kospi (-0.01%) and Shanghai Composite (-0.30%) ended marginally in the red.