Indian equity indices closed at record highs as investors were buoyed with optimism after the Narendra Modi-led government was reelected for a second term.

The S&P BSE Sensex ended 1.6 percent higher at 39,434.70 and the NSE Nifty 50 ended at 11,844.10, up 1.61 percent. The broader market index represented by the NSE Nifty 500 Index ended 1.77 percent higher.

The market breadth was tilted in favour of buyers. About 1,405 stocks advanced and 342 shares declined on National Stock Exchange.

All sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Index’s 5.59 percent gain.