The benchmark BSE Sensex was trading at 38,951 with gains of over 1000 points, while the NSE Nifty was up by over 300 points at 11,708.
The rupee appreciated 79 paise to 69.44 against the US dollar in opening trade today after exit poll results suggested another term for the ruling NDA government.
Forex traders said investors welcomed the exit poll results that predict a thumping majority for the current BJP-led government.
On Friday, the rupee had settled at 70.23 against the US dollar.
