Indian markets jumped sharply today, posting their biggest one-day gain in 10 years, after exit polls showed BJP-led NDA getting a comfortable majority in Lok Sabha elections. Most of the exit polls predicted a majority for the Prime Minister Narendra Modi's BJP and its allies after the six-week-long general election ended on Sunday. The rupee also jumped against the US dollar. The Sensex rose 1,421 points to 39,352 while Nifty surged to settle at 3.7% higher at 11,828, their highest close ever. The results of Lok Sabha elections will be announced on Thursday.





Here are 10 updates from Indian markets:





1) Banking and auto stocks led the rally. The Nifty Bank index surged over 4% to hit a new high today while the auto index also rose 4%. PSU banking stocks, in particular, posted sharper gains, with Nifty PSU Bank index rising 8%. Bank of India, Bank of Baroda, Syndicate Bank, Allahabad Bank, SBI and Canara Bank rose 8% to 10%.





2) Among Sensex stocks, both SBI and IndusInd Bank surged 8.5% while Tata Motors, L&T, Yes Bank, HDFC, M&M, Maruti, ONGC, and RIL rose between 5% and 7%.





3) The rupee rose 69.60 in late trade against the US dollar, as compared to its Friday’s close of 70.23. Bonds also rallied on expectations of rate cut from the RBI next month.





4) "Markets today started to price in the end of uncertainty on the debate around political stability and policy continuity on the back of various exit polls. If the actual results are close to exit polls, we may see a revival in domestic and foreign investor sentiment towards Indian equities," said Devang Mehta, head of equity advisory at Centrum Wealth Management.





5) "Once the noise around election results die down, market participants will be keen to watch the steps taken by the government to stimulate demand, boost consumption, revive capex and hence recuperate economic growth. Macros, both global and local and of course more importantly micros (earnings) will be key monitorable going ahead," he added. He remains positive on "high quality financials, beaten down discretionary and non-discretionary consumption related businesses and building materials".





6) Market analyst Sandip Sabharwal says the exit poll results will help Indian markets decouple from global cues in the near term. He remains positive on auto, infra, capital goods and banking stocks, if a stable government is formed.





7) The midcap and smallcap stocks that have underperformed this year could start to outperform, said Sanjiv Bhasin, EVP for markets and corporate affairs at IIFL. He remains positive on PSU stocks.





8) The broader markets also participated in today's rally with BSE midcap and smallcap indices up around 3.5%.





9) Shares of many NBFC today rallied on reports that the RBI may offer them a credit line to help them tide over a liquidity crisis.





10) IndiaBulls Housing Finance and DHFL surged over 10% while other housing finance companies like Gruh Finance, LIC Housing Finance, Repco Home and Reliance Home Finance also posted sharp gains.