raised hopes of better growth for the economy. The markets have risen based largely on these expectations. We believe that, the new governmentís intent and announcements pertaining to fiscal and investment reforms will be critical for the sentiment of the markets to be sustained, in the short term. We do believe that, the FY15 growth rates will likely improve only modestly and strong growth can be expected to return in FY16 and beyond."
A firming trend in the other Asian markets, a higher opening on the European markets and a record closing on the US markets in yesterday's trade too buoyed the trading sentiments in India, traders said.
Among the 30 Sensex components, 24 stocks gained, while Dr Reddys, HDFC Bank, Hindalco Industries, Mahindra and Mahindra, Sun Pharma and Tata Motors ended in negative zone on profit-booking.
Sectorally, the power sector index gained the most by surging 3.26 per cent, followed by consumer durables by 2.92 per cent and oil and gas index by 2.84 per cent.
Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mutual Fund, said: "Once the election results are announced, investor focus is likely to shift towards composition of the new government and likely policy initiatives in the run-up to the budget."
The IT index rose by 2.59 per cent and PSUs index by 2.45 per cent. However, healthcare sector index slipped 0.45 per cent.
Indian shares hit record high; exit polls point to Modi
India's benchmark BSE index rose on Tuesday to a third consecutive record high, surpassing the key psychological level of 24,000 points as stocks tied to the domestic economy surged after exit polls showed the Bharatiya Janata Party and its allies winning a majority in the elections.
The BSE index rose as much as 2.2 percent to hit a life high of 24,068.94, while the broader NSE index rose as much as 2.3 percent to hit a record high of 7,172.35.
Narendra Modi is set to become India's next prime minister when actual results are out on Friday, with his coalition broadly tipped to grab the 272 seats needed to clinch a majority, four major exit polls showed on Monday.
Still, exit polls by media organisations have proven unreliable in the past, while doubts have started emerging over whether markets have run ahead of fundamentals as