NSE's volatility index, or India VIX, fell as much as 23.88%, heading for its biggest single-day fall since August 26, 2009 after exit poll results showed Bharatiya Janata Party and its allies are headed for a majority in elections.
India VIX had surged in the lead-up to the exit polls as investors braced for a potential negative surprise.
However, projections for a majority reinforced market expectations. The Sensex rose as much as 1.57% to a record high of 23,921.91 while the Nifty surged 1.45% to record high of 7,116.20.
