The rupee soared more than 3 percent to five-month highs against the dollar, its best one-day rise in more than a decade, and bond yields fell as the win boosted hopes a strong coalition, would be able to push through economic reforms that would boost foreign investment.
A strong coalition, free of the pressures from its former communist partners, has boosted the prospect of reforms to encourage growth in Asia's third-largest economy, analysts said.
Investors cheered the victory by sending the market up nearly 15 percent within seconds of opening, triggering circuit breakers that halted trade for two hours.
A final circuit breaker was set off almost immediately after trading resumed, halting trade for the rest of the day. But overall volume was light at just 13.3 million shares, against a daily average of 400 million in 2009.
