Results for state elections are due on Sunday. Confirmation of a strong showing by the opposition Bharatiya Janata Party would bolster the chances of victory in general elections due by May, according to analysts. BJP is perceived by many investors as being more business friendly.
Still, opinion and exit polls have a patchy track record in India. Most surveys forecast the wrong outcome in the 2004 general election.
The rupee gained to 61.75 against the dollar, its strongest level since November 5. It was last trading at 61.76/77 compared to its 62.05/06 close on Wednesday.