Sensex and Nifty opened higher on May 31, pulling back from the oversold zone. Most of the sectoral indices saw buying interest in the early morning trade.

The gains in Nifty were led by financial services and telecom stocks. Meanwhile, IT and oil and gas stocks declined.

ICICI Bank, HDFC Bank, and Axis Bank led the gains in Nifty 50 while TCS, Tata Steel, and Infosys were among the major laggards.

At 9.18 am, Nifty was up 0.5 percent or 100 points at 22,589 and Sensex was up 360 points at 74,246.

Adani Enterprises and Mahindra & Mahindra rose 3.3 percent and 2.4 percent, respectively, on the Nifty 50 index.

"Today, we are likely to see a more range-bound session as market participants await the election results due on June 4," said Ruchit Jain, Lead Research Analyst at 5Paisa. "Next week, we might see some good momentum if the markets respond positively to the election outcome. If short positions formed by the FIIs get covered, we could also witness a strong short-covering move," he said.

In the previous session, bears dominated the monthly expiry, causing the Nifty and Sensex to slide by nearly 1 percent. Market experts attributed this decline to the expiry and FIIs forming short positions in the derivatives segment. "FIIs rolled over short positions to the June series. Their long-short ratio is around 13 percent, one of the lowest in historical data," said Jain.

"Considering the exit polls (on June 1), it is likely that volatility will surge higher," said Osho Krishan, Senior Analyst-Technical and Derivative Research, at Angel One. He advised traders to be selective about stocks and adhere to proper risk management to avoid unnecessary losses.

At 9:20 am, India VIX was down 3.2 percent at 23.4. The volatility index has risen from 10 just a month ago to its current levels.

Krishan said, "For now, 22,450-22,400 seems to be the last hope for the bulls, as any decisive breakdown is likely to disrupt the technical structure in the comparable period." On the higher end, 22,600-22,620 is expected to be seen as an intermediate hurdle, followed by the sturdy wall of 22800 in the short term, he said.

"The market is discounting the continuity of the current government, and if the NDA returns to power with over 280 seats, it might become a non-event," said Aishvarya Dadheech, Founder and CIO of Fident Asset. He added that attention will then shift to the budget, with sectors such as defense, railways, PSUs, and renewables likely to rally under Modi's continued leadership.

However, Dadheech noted that if the NDA secures fewer than 280 seats, it will cause concern, and the market will likely decline. "If they win below 270 seats, we might see a strong drawdown in the market," he said.