Market Live: Sensex hits 40k, Nifty crosses 12,000 for first time as NDA leads in trends

All the sectoral indices are trading in the green led by banks, auto, energy, infra, metal, IT and pharma.

Ramesh Damani, Member BSE told CNBC-TV18 that BJP won two elections with thumping majority, which proved that Narendra Modi, who will continue as Prime Minister, understands common people very well.

But the market is in higher end of range, and hence will not run away from here.

The benchmark indices hit record highs on policy continuity at Centre. The BSE Sensex touched 40,000 and Nifty at 12,000 levels for first time in history.

Ramesh Damani advised investors to invest in quality companies. "We are recommending recently listed PSU railway and defence companies, which are cheap and will benefit from expected government spending on infrastructure," he said.

Bank Nifty has touched new record high of 31,589.30 in today's trading as it gains more than 1,000 points.

Market movement will depend on the trends from key states like UP, West Bengal, Maharashtra and Bihar. If the BJP leads the trends as per exit polls or a better performance, markets will move sharply higher from here, said Abhijeet Bajpai, Co-founder & CEO, Avighna Trades.

"Market heavyweights like Reliance, SBI, HDFC, ICICI will lead the rally and the broader market will follow. In case the trends that come out are mixed or give no clear indication of majority to BJP, then market will tank and slide quite fast as the uncertainty will loom over, he added.

Market Update: Benchmark indices touched all-time record high as Sensex hit 40,000 and Nifty crosses 12,000 for the first time as early trends are showing that BJP led NDA is taking clear majority.

At 10:35 hrs IST, the Sensex is up 887.97 points or 2.27% at 39998.18, and the Nifty up 263.10 points or 2.24% at 12001.About 1424 shares have advanced, 476 shares declined, and 78 shares are unchanged. 

Mohammed Apabhai of Citi told CNBC-TV18 that India will get FII inflow after election verdit.

Outperformance of India among emerging markets is quite significant, he said. "I think lot of money forced into India even though is economy is not very strong."

According to him, once elections and RBI policy get over, there could be some breather in Indian equity market.

India VIX fell sharply by 26.76 percent to 20.23 percent on election results which indicated that BJP-led NDA government is coming in power again for another five-year term

If you want to know more about our services, please visit Free Stock Tips