According to CNBC-TV18, brokerage CLSA has said prospects of a stable government led by the BJP after the 2014 general elections are rising and the key is to see whether the BJP will be able to replicate the success in Uttar Pradesh, Maharashtra and Bihar.

3. 25 pm: Nifty hits all-time closing high

The Indian equity markets celeberated the business-friendly BJP's win in four state assembly elections as exuberant investors lifted the stock indices to new intraday highs.

The BSE Sensex and Nifty rose to record intra-day highs to hit 21,483 and 6397, respectively. The indices, however, came off highs as consildation set in.

The markets closed at a high today Sensex closes at 21286.77, up 212 pts; Nifty closes at 6363.90, up 104 pts.

Nifty ended at highest closing since 3 November, 2013. On 3 November, it was was at 6317.35.

Speaking about the trend, Rakesh Arora, head of research at Macquarie says the Nifty will cross 7000 mark going ahead if a stable government comes at the Centre. He sets the index's FY15 target at 7200 based on 15 times PE rerating. "This is a 17-year average, so it is not suggesting we will see a substantial P/E rerating. But there is a possibility," Arora said adding that markets can get rerated to higher P/E multiple of 16-17 times if a strong party is voted to power.

BSE realty index gains 2.6 pct, capital goods index up 2.5 pct, banking index gains 2.4 pct, oil and gas index up 1.7 percent.

10.46 am: Markets consolidate, India Inc is not celebrating

Investors are celebrating not India Inc, says HCC chief

The markets seem to be consolidating at the off-high levels as the Sensex was at 21312,27, up 315.74 ponts and Nifty is at 6354.80, up 95 points. The rupee was at 61.08 against the dollar, off its opening highs of 60.84.

Speaking to CNBC-TV18, Ajit Gulabchand of HCC said when the indices are going up it is the investors who are cleberating and not the India Inc.

He, however, said the elections are a mandate for change and people have expressed their anger at the present government's policies.

He said the India Inc will monitor policies for expediting investment from the new govenrment and that the BJP has made a clear statement as to waht it wants.

9. 10 am: Nifty hits all-time high at 6404

Nifty hit all-time at the open today, touching 6404, up 148 points. The BSESensex opened at 21472, up 470 points.

The Nifty new high comes after 5 years and 11 months.

The biggest winners since January 2008 are Pharma and IT Sectors. Capital Goods and Infrastructure stocks are the biggest losers.Lupin, TCS and Sun Pharma are the biggest gainers over the last 5 years.

The rupee and bonds rallied on Monday after the country's main opposition party, BJP, which is widely seen by investors as being more business friendly, performed well in state elections.The Bharatiya Janata Party (BJP) was the clear winner in three big states that went to the polls according to results on Sunday, with the count close in a fourth.

The partially convertible rupee was trading at 61.04/05 per dollar at 0913 IST (0343 GMT), after hitting as high as 60.84 to the dollar at the open, its strongest level since August 12. It had closed Friday at 61.41/42.

The benchmark 10-year bond yields fell 4 basis points to 8.81 percent.

9.00 am: Rupee opens at 60.85, Nifty touches 6600 in pre-open

In the pre-opening trade, the Nifty opened at6600, up 400 pts. The BSESensex opened at 21306, up 300 pts.

The rupee at 60.85, nearly 0.8 percent up from Friday's close. However, it then depreciated to 61.02.

Ray Farris of Credit Suise told CNBC-TV18 that India is going to enter a positive seasonality. "The rupee uptick is likely to extend a little further in the next one month or so," he said.

Arvind Sanger of Geoshpere Capital Management earlier termed state election results as a game changer for the market. He expects Nifty to hit 7000 in the near term on the general bullishness.

The state election results are likely to fire up the stock market today on hope of a stable government after the 2014 general election. Global cues are likely add fuel to the rally.

According to CNBC-TV18, brokerage CLSA has said prospects of a stable government led by the BJP after the 2014 general elections are rising and the key is to see whether the BJP will be able to replicate the success in Uttar Pradesh, Maharashtra and Bihar.

"Stock markets would definitely see a gap-up opening on Monday and may hit an all-time high level. Now, the next big trigger for the stock market would be the general election in 2014," said Paras Bothra, Research Head, Ashika Stock Brokers.

Enam Financial's Vallabh Bhansali said however that it is not a case that the market likes Congress or BJP government.

The market actually likes a stable government, he said, adding that the market had complaints about the existing government because economic reforms were not moving.

BJP has given a clarity about their leadership team which has helped them win over the market, Bhansali noted.

Dipen Shah, Head - Private Client Group Research at Kotak Securities, said that in the immediate term, market movement would be determined more by the economic data in the US and the outcome of the elections.

Dipen Shah, Head - Private Client Group Research at Kotak Securities, said that in the immediate term, market movement would be determined more by the economic data in the US and the outcome of the elections.

In line with the bullishness, the SGX Nifty futures on the Singapore Exchange was up about 3 percent at 6505, indicating a all time high opening for the domestic indices.

Maintaining its 12-month forward Nifty target of 6000, CIMB, has said that it won't extrapolate results to a nationwide level in 2014 polls, the TV channel reported.

According to Latha Venkatesh, the rupee is likely to rise t0 60-levels today as FIIs pump in more dollars into Indian equities.

Global cues

Most Asian share markets moved higher on Monday, energised by a potent cocktail of upbeat Chinese trade data, a weaker yen and a firm finish on Wall Street.

Both the dollar and the euro extended their gains on the yen, with the single currency hitting a five-year high in what should be a boost to Japanese exports, profits and stocks.

US crude oil futures were trading 4 cents firmer at $97.69, having surged more than 5 percent last week. Brent edged up 2 cents to $111.63 a barrel.

Gold has not been so fortunate, with the metal stuck at $1,227.46 and only just above five-month lows.