The BSE Sensex soared over 436 points in late morning deals today while the broader Nifty crossed the 10,900-mark after the BJP looked on course to emerge as the single largest party in Karnataka.
The BJP led in 102 constituencies, while the ruling Congress was ahead in 53 seats, according to trends.
The market cheered the poll trend, with hectic buying across the spectrum.
The 30-share Sensex was trading higher at 35,993.53, showing a gain of 436.82 points, or 1.22 per cent.
The broader Nifty-50 index too trading at 10,929.20, up 122.60 points, or 1.13 per cent.
Major gainers were Tata Steel 2.38 per cent, Kotak Bank 2.17 per cent, Yes Bank 2.13 per cent, Power Grid 1.99 per cent and HDFC Bank 1.62 per cent.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 717.99 crore on a net basis, while domestic institutional investors (DIIs) bought equities to the tune of Rs 687.23 crore yesterday, provisional data showed.
Asian stocks fell as investors remained cautious about key economic and political risks, while supply concerns kept crude oil prices near 3-1/2-year highs.
US stock indices posted modest gains yesterday, with the Dow ending higher for the eighth session in a row on signs of easing trade tensions between the US and China.