The stock markets extended rally for the second straight session on Friday, defying global concerns ahead of the exit polls scheduled on Sunday. The Sensex ended 537 points higher at 37,930.77, while the Nifty reclaimed above the crucial 11,400-mark. A broad-based rally led by banking and auto stocks ahead of exit poll results was observed, despite global headwinds. Intra-day the Sensex zoomed above the 38,000-mark.\u00a0Among the major Sensex gainers were Bajaj Finance jumping more than 6% after stellar Q4 results. Bajaj Auto shares also closed 3.3% higher after strong Q4 results. Among the other major movers were Hero MotoCorp (4.26%), Maruti Suzuki (3.53%), Kotak Mahindra Bank (3.31%), HDFC (2.79%), HUL (2.94%), M&M (2.38%), HDFC Bank (2.07%), ITC (2.27%), ICICI Bank (2.23%), Axis Bank (2.17%) and Coal India (1.66%). HDFC twins contributed to more than 190 points of the overall rally, data from BSE showed. A total of 23 shares ended in the green , while just 7 stocks ended negative in the 30-share Sensex. Also read:\u00a0Infosys offers 5 crore shares to employees; key things to know about performance based program Noting the various technical factors behind today\u2019s rally, analyst Milan Viashnav said that the corrective decline from the 11,860 in Nifty over the past several days had taken the 50-share index to nearly oversold levels. \u201cSecondly, the 100DMA and 200-DMA zones are one of the most important support zones for the Nifty and the index took support on the 100-DMA for four times,\u201d he explained in a note to Financial Express Online. Predominantly, there is a lot of caution that has built up before the exit polls that are scheduled to come in on Sunday. Market participants are not creating aggressive longs but at the same time, they are also not prepared to remain short in the present markets and this caused a heavy short covering to occur, he said. Ahead of the exit polls, global brokerage firm UBS said that valuations (absolute and relative to EM), flows (net US$9.8bn FII inflows in 2019 YTD) and its investor discussions suggest markets are factoring in a BJP-led NDA win. India has performed largely in line with EMs over the past year but outperformed by 5% post India-Pakistan issues. Earnings trajectory has lagged the EMs materially though. Broader markets and mid-caps have continued to struggle; 10 stocks drove 75% of Nifty's return since lows of 19 February. These suggest there remains some anxiety around the election outcome as well as possibly fundamentals, said the firm.