The benchmark BSE index rose on Thursday to approach a record high after exit polls predicted a strong showing for the key opposition party in Assembly elections held since November.
The gains were broad-based, with all components of both the BSE and the broader NSE index gaining. Results for Assembly elections are due on Sunday. Confirmation of a strong showing by the Opposition BJP would bolster the chances of victory in general elections due by May, according to analysts. BJP is perceived by many investors as being more business friendly.
Still, opinion and exit polls have a patchy track record in India. Most surveys forecast the wrong outcome in the 2004 general election.
The BSE index rose to as high as 21,165.60 points, approaching a record high of 21,321.53 points hit on November 3.
The broader NSE Nifty rose 1.98 per cent, after hitting a session high of 6,300.55 points, not far from a record 6,357.10 points hit on Jan. 8, 2010.