The India VIX or the fear gauge shot up to 30.18, a four year high level as the euphoria around the exit polls seemed dying down.
Index gains came on the back of banking and financial stocks, while IT, FMCG and Nifty media index ended lower.
The BSE Sensex ended 140.41 points or 0.36 per cent higher at 39,110.21. The markets shuttled over 345 points between the high of 39,249.08 and a low of 38,903.87. The broader Nifty ended at 11,737.90, up 28.80 points or 0.25 per cent.
"Volatility index shot to four year high just ahead the big event. Valuation is expensive depicting the risk of the market to handle such event risk, long-term investors can stay cautious," said Vinod Nair, Head of Research, Geojit Financial Services.
"Actual outcome in-line with the exit poll will be a relief to the market in the short-term. Formation of a government with strong mandate will support the undercurrent by foreign inflows."
Dewan Housing Finance (DHFL) scrips tanked over 17 per cent on the BSE but ended 9.43 per cent lower after the company said it would neither accept new deposits nor allow premature withdrawals.
The beleaguered Jet Airways gained over 5.17 per cent, the top gainers on the Sensex were IndusInd Bank, Sun Pharma and Tata Motors (DVR).
Among the losers were Yes Bank, ITC, TCS, and Power Grid which fell in the 1 to 3 per cent range.
( With inputs from IANS )