The benchmark BSE Sensex rallied nearly 800 points and the NSE Nifty soared over 200 points to hit their respective record highs in early trade on Thursday, as counting of votes for the Lok Sabha election began.
According to traders, investor sentiment was boosted by initial trends that suggested a win for the ruling NDA.
Amid market euphoria, the rupee also appreciated 26 paise to 69.40 against the US dollar in opening trade.
The 30-share index zoomed over 2 percent to hit an intra-day high of 39,901.59. Similarly, the broader NSE Nifty too spurted more than 2 percent to touch a record of 11,968.95.
In the previous session, the Sensex ended 140.41 points, or 0.36 percent, higher at 39,110.21; and the broader NSE Nifty rose 28.80 points, or 0.25 percent, to 11,737.90.
Top Sensex gainers in morning trade include IndusInd Bank, SBI, L&T, PowerGrid, Yes Bank, Kotak Bank, ICICI Bank, RIL, HDFC, Bharti Airtel and Axis Bank, rallying up to 7 percent.
While Vedanta, ONGC, Bajaj Auto and Sun Pharma slipped up to 1.92 percent.
Meanwhile, foreign institutional investors sold equity worth Rs 965.02 crore on Wednesday, while domestic institutional investors sold shares to the tune of Rs 157.75 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan, and Korea were trading on a negative note in their respective early sessions.
Brent crude, the global benchmark, was trading at 70.58 per barrel, lower by 0.58 percent.