Sensex, Nifty hit record closing highs as election optimism continues

Market players said investor focus was likely to shift from large caps to the broader markets on the hopes of the Modi government announcing pro-growth reforms

The benchmark indices ended at fresh highs for a second day in a row as the NDA's victory in the recently concluded general election kept investor sentiment bullish.

The Sensex ended at 39,683, up 249 points, or 0.63 per cent, adding to Friday's gain of 623 points, or 1.61 per cent. The Nifty50 added 81 points, or 0.68 per cent, to close at 11,925. The broader market continued to outperform, with the NSE Midcap 100 index gaining 1.7 per cent and the NSE Smallcap 100 gaining 1.64 per cent. The India VIX index, a gauge for market volatility, continued to cool