The benchmark BSE Sensex jumped over 200 points to hit a record intra-day high of 39,565.82 as investors' euphoria over exit poll outcome continued in early session on Tuesday.
The 30-share index was trading 205.24 points, or 0.52 per cent, higher at 39,557.91.
In similar movement, the broader NSE Nifty rose 48.90 points, or 0.41 per cent, to 11,877.15.
In the previous session, the Sensex ended 1,421.90 points, or 3.75 per cent, higher at 39,352.67, and the Nifty soared 421.10 points, or 3.69 per cent, to 11,828.25.
Top gainers in the Sensex pack in morning trade include HDFC twins, Bajaj Finance, Coal India, RIL, Bajaj Auto, HUL, IndusInd Bank, Sun Pharma, Vedanta, Axis Bank and Asian Paints, rising up to 2.21 per cent.
On the other hand, Tata Motors, Yes Bank, Bharti Airtel, Tata Steel, SBI, Infosys, ONGC and TCS fell up to 3.18 per cent.
"Market has given a thumbs-up to exit poll numbers. Sentiments have turned around drastically and the benchmark indices can gain 5-8 per cent more from here over the next few weeks if the final election outcome is in line or even better than exit polls," said Gaurav Dua, Senior VP, Head – Strategy and Investments, Sharekhan by BNP Paribas.
Most exit polls forecast another term for Prime Minister Narendra Modi. The results of the seven-phase polls will come out Thursday.
Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.
Foreign institutional investors bought equity worth Rs 1,734.45 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 542.71 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan and Korea were trading on a mixed note in their respective early sessions.
Benchmarks on Wall Street ended in the red on Monday.
On the currency front, the rupee appreciated marginally to 69.71 against the US dollar in opening trade Tuesday.
Brent crude, the global benchmark, was trading at 72.20 per barrel, higher by 0.32 per cent.