Markets recover quickly on value purchases following a sharp decline.

Mumbai: Following a severe beating in the previous trade, benchmark equity indexes Sensex and Nifty started the week on a positive note as value-buying at lower levels sparked an uptick in the markets.

Following a severe loss on Tuesday, the 30-share BSE Sensex made a remarkable recovery, rising 948.83 points to 73,027.88 in early trade. To reach 22,131.60, the NSE Nifty increased by 247.1 points.

In the 543-member Lok Sabha, the NDA easily leads with 272 votes, while the BJP has not reached the magic number for the first time since 2014 and is heavily reliant on its partners to form a government.

Results for all 543 Lok Sabha seats have been released by the Election Commission; the Congress has won 99 seats and the BJP 240.

"We expect the Modi 2.0 policy agenda—which includes infrastructure construction, manufacturing, investment-led growth, and capex—to continue, albeit with some modifications in light of the smaller majority. Given the nature of the ruling, we also anticipate some populist initiatives to alleviate rural hardship and improve emotions at the margin, according to a Motilal Oswal Research study.

Institutional investors from abroad (FIIs)offloaded shares on Tuesday worth Rs 12,436.22 crore, as per exchange records.

Tuesday's trading session was the worst in four years for the markets, as the BJP missed the magic number for the first time since 2014.

Tuesday saw a sharp decline in the BSE benchmark Sensex of 4,389.73 points, or 5.74 percent, to close at a level that was more than two months lower at 72,079.05. The barometer plunged 6,234.35 points, or 8.15%, during the day session, to a level of 70,234.43, which was over five months below its peak.

During the day, the NSE Nifty fell 1,982.45 points, or 8.52%, to 21,281.45. Subsequently, it dropped sharply by 1,379.40 points, or 5.93 percent, to conclude at 21,884.50.