Mumbai, 20 May:

Indian markets jumped sharply today, posting their biggest one-day gain in 10 years after exit polls showed BJP-led NDA getting a comfortable majority in Lok Sabha elections.

Most of the exit polls predicted a majority for the Prime Minister Narendra Modi’s BJP and its allies after the six-week-long general election ended on Sunday. The rupee also jumped against the US dollar. The Sensex rose 1,421 points to 39,352 while Nifty surged to settle at 3.7% higher at 11,828, their highest close ever. The results of Lok Sabha elections will be announced on Thursday.

Here are 10 updates from Indian markets:

1) Banking and auto stocks led the rally. The Nifty Bank index surged over 4% to hit a new high today while the auto index also rose 4%. PSU banking stocks, in particular, posted sharper gains, with Nifty PSU Bank index rising 8%. Bank of India, Bank of Baroda, Syndicate Bank, Allahabad Bank, SBI and Canara Bank rising 8% to 10%.

2) Among Sensex stocks, SBI and IndusInd Bank both surged 8.5% while Tata Motors, L&T, Yes Bank, HDFC, M&M, Maruti, ONGC, and RIL rose between 5% and 7%.

3) The rupee rose 69.60 in late trade against the US dollar, as compared to its Friday’s close of 70.23. Bonds also rallied on expectations of rate cut from the RBI next month.

4) “If the NDA’s numbers cross 300, then the rally will continue beyond May 23,” said Mayuresh Joshi, senior vice president and fund manager at Angel Broking, adding factors such as the liquidity situation, corporate earnings and global worries, may rein in further upside.

5) Market analyst Sandip Sabharwal says the exit poll results will help Indian markets decouple from global cues in the near term. He remains positive on auto, infra, capital goods and banking stocks, if a stable government is formed.

6) After the actual election results are announced, the market’s focus will shift back to economy and earnings, says Jagannadham Thunuguntla, senior VP and head of research (Wealth) at Centrum Broking.

7) The midcap and smallcap stocks that have underperformed this year could start to outperform, said Sanjiv Bhasin, EVP for markets and corporate affairs at IIFL. He remains positive on PSU stocks.

8) The broader markets also participated in today’s rally with BSE midcap and smallcap indices up around 3.5%.