In Indian benchmark indices celebrated market rally with Nifty Bank recording its fresh high of 9,122, crossing its March 2015 level of 9119.20. 15 stocks on the Nifty crossed its 52-week high.
The Sensex also clocked a high of 29,561 in early trade.
At 9.30 AM, the S&P BSE Sensex rallied 29,384, up 437.93 points while the Nifty50 was ruling at 9,067, 133.40 points higher.
"Since, BJP has won the UP assembly election with clear majority and as indicated by SGX Nifty; the Nifty is expected to open with decent gains of more than 2 percent," said an Angel Broking report ahead of market opening.
Sentiment turned extremely bullish as the BJP's huge victory in Uttar Pradesh and Uttarakhand is seen as giving a fillip to the government's reform agenda, which triggered a flurry of buying by participants, including foreign and domestic institutional investors.
Besides, expectations of more liquidity in bourses had a positive impact, traders added.
Investors clearly welcomed the BJP win in Uttar Pradesh, where the party won its biggest margin in 37 years with a three-fourth majority. BJP won in four out of five states that went to polls.
The poll results is also set to boost the foreign investor sentiment, who read this as a clear sign of political stability beyond 2019 general elections.
Indian National Rupee
The rupee strengthened up to 66 against the US dollar closing at 66.61 on Friday and opened today at highest level since April 2016.
Wholesale price inflation (WPI) data for February is set to release today. The inflation for January stood at a 30-month high of 5.25 per cent while the wholesale price index (WPI) based inflation in December stood at 3.39 per cent.
28 out of 30 stocks on the BSE were trading in green led by ICICI Bank gaining over 5 per cent followed by Larsen and Toubro, HDFC and ITC all clocking over 2 per cent.
The Nifty Bank surged over 2 per cent.
Among the Nifty gainers since March 2015 were Yes Bank (73 per cent), Maruti (62 per cent), BPCL (62 per cent), Reliance (44 per cent) and Grasim (29 per cent).
Sectorally, the BSE bank index gained the most, rising 2.20 per cent, followed by capital goods 2.10 per cent and realty by 1.61 per cent.
Traders are on the watchout for US Federal Reserve's meet on whether to raise interest rates. They will look for clues on how quickly the US central bank is planning to tighten monetary policy.
Chinese shares saw early gains rolled back after combined retail sales for January and February rose only 9.5 per cent from a year earlier, missing expectations of 10.5 per cent.
Among the Asian markets, China's Shanghai Composite was up 0.11 per cent, Hong Kong's Hang Seng Index gained 0.05 per cent while Japan's Nikkei inched 0.11 per cent lower.