The Sensex had a significant increase, rising by 1,300 points. All sectors traded positively, with Nifty Bank, Energy, Infrastructure, and Realty leading the gains, reaching up to 3 percent.

This surge resulted in a substantial increase in investor wealth, amounting to Rs 8.5 lakh crore in just one day. Several factors contributed to this rally, including the positive outcome of the Maharashtra elections, positive signals from Asian and US markets, and a decrease in foreign outflows. Short covering, particularly in large-cap stocks, played a significant role in the rally, with some stocks rising by over 4 percent.

Analysts believe that the upcoming expiry for the November series is prompting call writers to exit their positions, which could further drive the market upwards. The victory of the BJP-led Mahayuti alliance in the Maharashtra Assembly elections is attributed to the rally in PSU stocks. Companies like PFC, IRFC, and GAIL witnessed gains between 3-8 percent in a generally strong market.