The benchmark BSE Sensex rallied over 400 points in early trade a day after Prime Minister Narendra Modi-led BJP got an absolute majority in the Lok Sabha elections. Amid market euphoria, the rupee also appreciated 23 paise to 69.78 against the US dollar.

After hitting a high of 39,223.85, the 30-share index was trading 170.51 points, or 0.44 per cent, higher at 38,981.90.

Similarly, the broader NSE Nifty spurted 54.15 points, or 0.46 per cent, to 11,711.20.

Top Sensex gainers in morning trade include L&T, Bharti Airtel, SBI, Tata Motors, Bajaj Finance, Asian Paints, M&M, ICICI Bank, Axis Bank, IndusInd Bank, Infosys and HDFC twins, rising up to 2 per cent.

While, Bajaj Auto, ONGC, HUL, Coal India, HCL Tech, TCS, NTPC and RIL fell up to 2 per cent.

In the previous session, the BSE Sensex surged over 1,000 points to touch the 40,000-mark for the first time ever following the BJP’s stellar electoral show, but could not sustain the momentum as investors chose to cash in on the gains.

The Sensex ended 298.82 points, or 0.76 per cent, lower to close at 38,811.39, while the Nifty settled 80.85 points, or 0.69 per cent, down at 11,657.05.