The equity benchmark indices registered strong gains during the morning session after early trends showed that the BJP could get an absolute majority and form the government in Karnataka.
At 11:20 a.m, the 30-share Sensex was trading at 35,867, up 310.54 points or 0.87%. The market breadth was also strong with nearly 1,500 stocks gaining ground as against only 761 declines.
The broader Nifty was also up 89.45 points at 10,896.
The markets have been trading cautiously in the past few days waiting for the Assembly election results. Incidentally, the market breadth remained weak on most days even as the benchmarks posted marginal gains.
"The verdict will be seen as a big sentimental positive for the indices, which were factoring in a severely fractured mandate. Market will take cues from this victory and expect a similar result in the General Elections of 2019. Stability in government is what the stock market is seeking," said Amar Ambani, Partner & Research Head, IIFL Investment Managers while highlighting the fact that early indications suggest a strong lead for the BJP.