Karnataka election results: Sensex and Nifty rose over 1 per cent.
Reversing early losses, the Sensex and Nifty surged higher as BJP edged past the half-way mark in Karnataka, according to the leads so far.
Markets had opened flat as early leads indicated Congress and BJP locked in close fight in Karnataka, where votes were cast on Saturday.
The Sensex was up over 400 points at 35,991, less than 500 points away from all-time high of 36,443, hit in January this year.
Nifty was firmly above 10,900.The rupee also recovered to 67.55 after falling to 67.77 against the US dollar, its lowest since January 2017.
The rupee had ended at 67.51 against the US currency on Monday.