The benchmark S&P BSE Sensex rose over 600 points during the late afternoon session of the trade on Wednesday, led by gains in financials along with auto stocks which rose over 3 per cent.
Positivity in Asian markets contributed to the gaines by the domestic equity indices.
“With the crude oil prices under control and no hike in interest rates, the corporates are expected to post good results. The investors are now shifting their focus from elections,” said Astha Jain, a senior analyst at Hem Securities.
The benchmark Brent Crude traded at $60.95 per barrel while the domestic currency weakened to Rs 72 to a US dollar from its previous close of 71.85.
At 3.01 p.m., the Sensex traded at 35,751.04 points, higher by 601.03 or 1.71 per cent from the previous close.
It has touched an intra-day high of 35,771.90 and a low of 35,167.47 so far.
The Nifty50 traded at 10,732.60 points, higher by 183.45 or 1.74 per cent from the previous close.
“The positivity is surprising but there is a possibility that the markets are comfortable from the fact that either the Congress or BJP will be dominant during the general elections,” Rusmik Oza, Head-Fundamental Research, Kotak Securities, told IANS.
“…historically the economy has grown better with a majority or a coalition led by either BJP or Congress.”
According to analysts, the markets ignored the sudden resignation of Urjit Patel, perhaps because it might lead to a more liberal monetary policy with the appointment of Shaktikanta Das as the new Reserve Bank of India Governor.