The 30-share index was trading 1,114.42 points, or 2.94 per cent, higher at 39,045.19. In similar movement, the broader NSE Nifty soared 326.80 points, or 2.86 per cent, to 11,733.95.
Top gainers in the Sensex pack include SBI, Yes Bank, Tata Motors, L&T, ICICI Bank, IndusInd Bank, ONGC, Maruti, M&M, Axis Bank, RIL, Hero MotoCorp, HDFC, Vedanta, Asian Paints, Tata Steel and Bajaj Finance, rising up to 7 per cent.
On the other hand, Bajaj Auto and Infosys slipped up to 1 per cent. Most exit polls Sunday forecast another term for Prime Minister Narendra Modi, with some of them projecting that BJP-led NDA will get more than 300 seats to comfortably cross the majority mark of 272 in the Lok Sabha.
The results of the seven-phase polls will come out Thursday. “The rise in main indices is justified considering the numbers that have come in the exit poll,” said Rusmik Oza, Head of Fundamental Research, Kotak Securities.
Expect Nifty 50 to retest the recent high of 11, 850 before May 23. Break out into a new zone would depend on whether BJP on its own is able to secure more than half the seats, Oza added. Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.
On the currency front, the rupee appreciated by 68 paise to 69.54 against the US dollar. Brent crude, the global benchmark, was trading at 73.22 per barrel, higher by 1.40 per cent.