Sensex up over 300 points on BJP win, oil and gas reforms

The BSE Sensex surges over 300 points and the Nifty gains more than 100 points after the government's energy reforms lead to a rally in energy firms, while wins by Prime Minister Narendra Modi's party in two state elections raise expectations for additional reforms.

The government on Saturday removed diesel price controls and raised the cost of natural gas. Analysts said markets will now expect more measures after results on Sunday showed the Bharatiya Janata Party won elections in Maharashtra and Haryana.

State run oil refiners surged, with Hindustan Petroleum Corp up 7.4 percent. Bharat Petroleum Corp rose 6.3 percent.

Shares in oil explorers also jumped: Oil and Natural Gas Corp gained 5.6 percent.