NEW DELHI: Exit polls projecting Narendra Modi-led NDA government coming back to power infused a sense of euphoria in domestic market on Monday as benchmark equity indices logged record closing highs and also witnessed their biggest single-day gain since September 10, 2013.Again at the forefront of this rally were financial stocks and Reliance Industries Nifty Bank also scaled fresh record high.The BSE benchmark Sensex zoomed 1,421 points or 3.75 per cent to 39,353 with all but two stocks in the red. NSE Nifty settled at 11,828, up 421 points or 3.69 per cent. India VIX eased 16.74 per cent to 23.37.The market breadth remained in favour of the buyers. For every 10 stocks that traded, seven ended higher.As of Monday's close, the total market capitalisation of the BSE-listed firms stood at Rs 151 lakh crore, up Rs 5.26 lakh crore. With this, the market value of domestic stocks has risen by Rs 7.47 lakh crore in three sessions to Monday.On Sunday, exit polls on an average predict 304 seats for the NDA, down from 336 seats in 2014, but comfortably above the simple majority mark of 272. Among the two exit polls that have historically been more accurate, Today’s Chanakya predicted 350 seats for the NDA, Nomura India noted.While pre-election projections had anticipated a drop in BJP’s seat count in the Hindi Heartland in central, northern and western states such as Gujarat, Rajasthan, Uttar Pradesh, Madhya Pradesh, Bihar, Haryana, Chhattisgarh, Delhi and Maharashtra, the latest polls suggest otherwise.“Post 2018 state elections, which were won by the Congress in Rajasthan, MP and Chhattisgarh, the party was expected to do well in these states and wrest seats from the BJP. However, if exit polls predictions are correct, it seems the BJP has managed to retain its dominant position in these states,” Motilal Oswal Securities said.However, Gautam Chhaochharia, MD and Head of Research at UBS Securities, asked investors to take these polls with a pinch of salt."Exit poll results are positive for market sentiment. These are of course exit poll results and not actual results. Some people will have on the back of their mind what happened in 2004 and in Australia last week," the expert added.The domestic currency too rallied against the US dollar, rising 86 paise to hit intraday high of 69.36.Among Sensex stocks, barring Infosys and Bajaj Auto , all ended in the green. IndusInd Bank , SBI, Tata Motors, YES Bank, L&T and HDFC were among the top Sensex gainers, rising up to 8 per cent.RIL and HDFC duo combined added some 550 points to the overall 1,400-point rise in Sensex.Both midcap and smallcap stocks rose in line with benchmark Sensex. BSE Midcap index jumped 3.57 per cent and BSE Smallcap 3.55 per cent.Sectorally, all indices ended in the green with Capital Goods index, Industrials and Realty rising the most at 5.62 per cent, 5.57 per cent and 5.47 per cent, respectively.IT logged menial gains of just 0.69 per cent."As expected Indian markets reacted very positively today with broader indices showing better strength than the Nifty-50. If Nifty crosses the previous peak of 11,856 then we can expect it to rise further an test the 12,000 mark before 23rd May. For Nifty to cross 12,000 a strong single party majority for the BJP is required. Going forward if we have the BJP-led coalition coming back to power on 23rd then expect broader participation in the mid & small cap space as they are the most beaten down in the last 18 months"- Rusmik Oza, Head of Fundamental Research, Kotak securities"Market elevated to near record high while rupee strengthened as exit poll predicted a landslide victory for the ruling government. Short covering and value buying were seen in many beaten down stocks and sectors in expectation of continuity in policies and reforms. The rally was broad based where banks and infrastructure outperformed. Global market was mixed due to trade tensions and rise in oil prices as OPEC is likely to maintain production cut in 2019"- Vinod Nair, Head of Research, Geojit Financial Services