The 30-share Sensex gained 650 points while Nifty rose 198 points to reach all-time high.
Indian equity markets reached a record high today with the Sensex rising by 650 points to reach 22994, just six points away from 23000. The Sensex had crossed 23000 and later shed some gains to end at 22,994.
The 50-share Nifty gained 198 points or 2.99 percent to reach 6858.
Experts said that the rally was purely due to the anticipation of poll results next week as there were no other major cues for the Indian markets.
Market participants are expecting that the markets will remain volatile next week ahead of the poll results.
“Today’s rally was purely speculative. The markets will remain volatile. Our view is that those who have bought in the market should hold and there will be opportunities in the near time to enter the markets again,” said Anubhav Shrivastav Fund Manager, Head Institutions & Product Development, Motilal Oswal Mutual Fund.
Pankaj Murarka, Head – Equity, Axis Asset Management said "Looking at the recent rally in India’s stock market on the election optimism surrounding a likely stable government, investors could be forgiven for believing it’s starting to look expensive. But if you look past the short-term election rhetoric, the rally in Indian equities has not been broad-based and has instead been focused in select sectors and companies. Valuations, on the whole, still remain reasonable and as we like to remind investors: India in 2014 is not the same as it was in 2009, when a short-term stimulus and a coordinated global response to the financial crisis delivered quick gains in Indian equities. The current recovery in the Indian economy will be more protracted but bodes well for long-term investors focused on the quality of future growth in India."
Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities said “The focus remains on the approaching D-day i.e. 16th May when the election verdict would be announced. But even before that, the market would react to exit polls numbers as it starts trickling in once the final phase of polling gets completed by 12th May. Sector-wise, the market behavior was in line with pattern of past few weeks – cyclicals gained at the expense of defensives.”
“Going into the next week, we would have the IIP and Inflation data to be announced. On the global front, stimulus measures by EU if any could be a positive. However, focus will be firmly on the exit poll numbers due on Monday evening as well as on the final election results on Friday. A decisive verdict from the elections will be a long term positive for the markets,” he added
The Lok Sabha election results are due on May 16. Indian markets had hit circuit limits during the previous elections in 2004 and 2009 which experts suggest is unlikely to happen this time.