diff --git a/frappe/desk/search.py b/frappe/desk/search.py
index 3506f6153c..861388bae9 100644
--- a/frappe/desk/search.py
+++ b/frappe/desk/search.py
@@ -87,7 +87,7 @@ def search_widget(doctype, txt, query=None, searchfield=None, start=0,
 				filters=filters, fields=fields,
 				or_filters = or_filters, limit_start = start,
 				limit_page_length=page_len,
-				order_by="if(_relevance, _relevance, 99999), modified desc".format(doctype),
+				order_by="if(_relevance, _relevance, 99999), idx desc, modified desc".format(doctype),
 				ignore_permissions = True if doctype == "DocType" else False, # for dynamic links
 				as_list=True)
 
diff --git a/frappe/hooks.py b/frappe/hooks.py
index 1eafb75b51..9c1c623d47 100644
--- a/frappe/hooks.py
+++ b/frappe/hooks.py
@@ -111,6 +111,7 @@ scheduler_events = {
 		"frappe.email.doctype.email_account.email_account.pull",
 		"frappe.email.doctype.email_account.email_account.notify_unreplied",
 		"frappe.utils.error.collect_error_snapshots",
+		"frappe.model.utils.link_count.update_link_count",
 	],
 	"daily": [
 		"frappe.email.bulk.clear_outbox",
diff --git a/frappe/model/base_document.py b/frappe/model/base_document.py
index a3b546ea40..ed8a467789 100644
--- a/frappe/model/base_document.py
+++ b/frappe/model/base_document.py
@@ -8,6 +8,7 @@ from frappe.utils import (cint, flt, now, cstr, strip_html, getdate, get_datetim
 	sanitize_html, sanitize_email)
 from frappe.model import default_fields
 from frappe.model.naming import set_new_name
+from frappe.model.utils.link_count import notify_link_count
 from frappe.modules import load_doctype_module
 from frappe.model import display_fieldtypes
 from frappe.model.db_schema import type_map, varchar_len
@@ -403,6 +404,7 @@ class BaseDocument(object):
 		for df in (self.meta.get_link_fields()
 				 + self.meta.get("fields", {"fieldtype":"Dynamic Link"})):
 			docname = self.get(df.fieldname)
+
 			if docname:
 				if df.fieldtype=="Link":
 					doctype = df.options
@@ -420,6 +422,8 @@ class BaseDocument(object):
 
 				setattr(self, df.fieldname, value)
 
+				notify_link_count(doctype, docname)
+
 				if not value:
 					invalid_links.append((df.fieldname, docname, get_msg(df, docname)))
 
diff --git a/frappe/model/utils/link_count.py b/frappe/model/utils/link_count.py
new file mode 100644
index 0000000000..898e89556e
--- /dev/null
+++ b/frappe/model/utils/link_count.py
@@ -0,0 +1,29 @@
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# MIT License. See license.txt
+
+from __future__ import unicode_literals
+
+import frappe
+
+def notify_link_count(doctype, name):
+	'''updates link count for given document'''
+	link_count = frappe.cache().get_value('_link_count')
+	if not link_count:
+		link_count = {}
+
+	if not (doctype, name) in link_count:
+		link_count[(doctype, name)] = 1
+	else:
+		link_count[(doctype, name)] += 1
+
+	frappe.cache().set_value('_link_count', link_count)
+
+def update_link_count():
+	'''increment link count in the `idx` column for the given document'''
+	link_count = frappe.cache().get_value('_link_count')
+	if link_count:
+		for key, count in link_count.iteritems():
+			frappe.db.sql('update `tab{0}` set idx = idx + %s where name=%s'.format(key[0]), (count, key[1]))
+
+	# reset the count
+	frappe.cache().delete_value('_link_count')
diff --git a/frappe/tests/test_document.py b/frappe/tests/test_document.py
index 62c3bc40d8..6d5b8662c5 100644
--- a/frappe/tests/test_document.py
+++ b/frappe/tests/test_document.py
@@ -98,7 +98,7 @@ class TestDocument(unittest.TestCase):
 
 	def test_permission(self):
 		frappe.set_user("Guest")
-		d = self.assertRaises(frappe.PermissionError, self.test_insert)
+		self.assertRaises(frappe.PermissionError, self.test_insert)
 		frappe.set_user("Administrator")
 
 	def test_permission_single(self):
@@ -189,3 +189,30 @@ class TestDocument(unittest.TestCase):
 		self.assertTrue(xss not in d.subject)
 		self.assertTrue(escaped_xss in d.subject)
 
+	def test_link_count(self):
+		from frappe.model.utils.link_count import update_link_count
+
+		update_link_count()
+
+		doctype, name = 'User', 'test@example.com'
+
+		d = self.test_insert()
+		d.ref_type = doctype
+		d.ref_name = name
+
+		link_count = frappe.cache().get_value('_link_count') or {}
+		old_count = link_count.get((doctype, name)) or 0
+
+		d.save()
+
+		link_count = frappe.cache().get_value('_link_count') or {}
+		new_count = link_count.get((doctype, name)) or 0
+
+		self.assertEquals(old_count + 1, new_count)
+
+		before_update = frappe.db.get_value(doctype, name, 'idx')
+		update_link_count()
+		after_update = frappe.db.get_value(doctype, name, 'idx')
+
+		self.assertEquals(before_update + new_count, after_update)
+