Mumbai, Dec 18 (IANS): The BSE Sensex surged by over 300 points during the mid-afternoon trade session on Monday after counting trends indicated a victory for the BJP in both Gujarat and Himachal Pradesh Assembly elections.

Both the key Indian equity indices traded higher by almost one per cent, cheered by the certainty that the ruling BJP was set to retain power in Gujarat. In Himachal Pradesh, the BJP was set to wrest power from the Congress.

"The markets may wait for the end numbers to come out and probably then the course would be decided. Volatility is expected for the sessions to come," Sacchitanand Uttekar, AVP Research for Tradebulls, told IANS.

At 12.48 p.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE, traded at 33,790.95 points -- up 327.98 points or 0.98 per cent -- from its previous close.

The Sensex touched a high of 33,796.29 points and a low of 32,595.63 points during the intra-day trade so far.

The BSE market breadth was bullish -- 1,676 advances and 819 declines.

The wider Nifty50 of the National Stock Exchange (NSE) traded higher by107.95 points or 1.04 per cent at 10,441.20 points.

On the BSE market breadth, stocks of Mahindra and Mahindra, State Bank of India, Sun Pharma, Adani Ports and Tata Steel were leading the upward rally.

On an opening basis, the S&P BSE Sensex and NSE Nifty took an early beating following initial reports of a possible BJP defeat in Gujarat, Prime Minister Narendra Modi's home state.

There was an intra-day swing between the highest and lowest point of trade at the S&P BSE Sensex of over 800 points.