At 14:30 IST, the S&P BSE Sensex was up 272.91 points or 0.37% to 74,655.16. The Nifty 50 index added 86.45 points or 0.38% to 22,706.80.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index jumped 1.97% and the S&P BSE Small-Cap index gained 2.89%.

The market breadth was strong. On the BSE, 2,915 shares rose and 893 shares fell. A total of 100 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 8.73% to 17.24.

The BJP-led National Democratic Alliance (NDA) will establish the new government on Saturday, when Narendra Modi will be inaugurated as Prime Minister for a historic third consecutive term. The BJP has obtained written support from the leaders of the Telugu Desam Party (TDP) and Janata Dal (United) (JD-U).

Buzzing Index:

The Nifty IT index surged 2.64% to 33,960.75. The index rallied 5.09% in two trading sessions.

HCL Technologies (up 3.85%), Tech Mahindra (up 3.5%), Persistent Systems (up 3.34%), Mphasis (up 2.75%), Infosys (up 2.52%), LTIMindtree (up 1.84%), Wipro (up 1.56%), Tata Consultancy Services (up 1.51%), Coforge (up 1.26%) and L&T Technology Services (up 0.97%) advanced.

Numbers to Track:

The yield on India's 10-year benchmark federal shed 0.13% to 7.017 as compared with previous close 7.026.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.4775, compared with its close of 83.4450 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.42% to Rs 72,820.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 104.29.

The United States 10-year bond grew by 0.35% to 4.300.

In the commodities market, Brent crude for Aug 2024 settlement gained 55 cents or 0.70% to $ 78.96 a barrel.

Stocks in Spotlight:

Sun Pharma Advanced Research Company (SPARC) rallied 3.07% after the announced that Chetan Rajpara, chief finanacial officer (CFO) of the company has tendered his resignation effective from 5 June 2024.

Orchid Pharma surged 7.79% after the company said that it has received an approval from Drugs Controller General of India (DCGI) to manufacture and market its new chemical entity active pharmaceutical ingredient (API), Enmetazobactam.