Indian markets soar on exit poll results, rupee at 18.93 vs dirham

Mumbai - The Sensex advanced over 1,079 points during the afternoon trade.

Indian equity indices traded on a firm note on Monday after most exit polls showed a BJP-led NDA getting a comfortable majority in the now concluded general elections and the rupee appreciating 79 paise against the US dollar.
On the currency front, the rupee appreciated by 79 paise to 69.44 against the US dollar in opening trade on Monday.
Against the UAE dirham, the rupee was trading at 18.93 at 1.09p,am (UAE time), according to XE.com.
The Sensex was up 1,294 points at 39,230.73, or 3.41 per cent, at 1.10pm, while the Nifty was up by 378 points at 11,785.65, up 3.32 per cent.

Markets favour a stable governments and until Sunday owing to uncertainty over the general elections, trading was marked by heavy volatility.

On Monday, the Indian VIX or the volatility index saw a sharp drop of over 18 per cent. The index came down to 22.9 from the 28-29 levels as investors cheered the exit polls.

"Post the exit polls we can expect Nifty to again test its recent high before May 23. Fresh breakout into the 12,000 to 12,500 zone would depend on whether BJP gets majority on its own," said Rusmik Oza, Head of Fundamental Research, Kotak Securities.

At 12.19pm, the Nifty was trading at 11,723.50, up 316.35 points or 2.77 per cent. It opened at 11,651.90 from its previous close of 11,407.15.

"If exit polls come true on May 23 then we can expect a structural up move in the mid and small cap space," Oza added.

The BSE Sensex was trading at 39,008.21 points up 1077.44 points or 2.44 per cent higher.

The benchmark Sensex opened at 38,701.18 from its previous close of 37,930.77.

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