At 12:30 IST, the barometer index, the S&P BSE Sensex was surged 1,442.84 points or 2% to 73,521.23. The Nifty 50 index rallied 452.25 points or 2.07% to 22,347.55.

In the broader market, The S&P BSE Mid-Cap index rallied 3.03% and the S&P BSE Small-Cap index gained 1.98%.

The market breadth was positive. On the BSE, 2,191 shares rose and 1,471 shares fell. A total of 132 shares were unchanged.

Lok Sabha Elections:

The Lok Sabha elections 2024 concluded with the Election Commission of India declaring all results. Prime Minister Narendra Modi is set to form the government for a third consecutive term. The BJP emerged as the largest party, winning 240 out of 543 seats, while the Congress secured 99 seats. The BJP-led National Democratic Alliance (NDA) won 293 seats, and the Opposition INDIA alliance obtained 232 seats. Despite significant losses in three Hindi heartland states, the NDA secured a majority in the Lok Sabha after a fiercely contested election.

Economy :

The seasonally adjusted HSBC India Services Business Activity Index remained comfortably above the neutral mark of 50.0 in May, highlighting a sharp upturn in output. That said, the headline figure fell from 60.8 in April to 60.2, its lowest mark since last December.

Growth was reportedly supported by rising sales, productivity gains and demand strength. The upturn was somewhat hampered by competitive and price pressures.

May data showed that robust increases in new business intakes continued to underpin output growth across India's service economy. Rates of expansion eased to the slowest in the calendar year-to-date, however, amid fierce competition, price pressures and a severe heatwave. Both input costs and output charges rose to greater extents.

Indian private sector output rose sharply halfway through the first quarter, despite another loss of growth momentum. The HSBC India Composite Output Index slipped from 61.5 in April to 60.5 in May, highlighting the slowest rate of expansion since last December. There were softer increases in both factory production and services activity.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 27.20% to 19.47. The Nifty 27 June 2024 futures were trading at 22,360.10, at a premium of 12.55 points as compared with the spot at 22,347.55.

The Nifty option chain for the 27 June 2024 expiry showed maximum Call OI of 41.2 lakh contracts at the 23,000 strike price. Maximum Put OI of 48 lakh contracts were seen at 21,000 strike price.

Buzzing Index:

The Nifty Pharma index jumped 3.54% to 19,262. The index declined 1.38% in the previous trading session.

Sanofi India (up 6.92%), Laurus Labs (up 6.51%), Glenmark Pharmaceuticals (up 5.96%), Natco Pharma (up 5.84%), Granules India (up 5.44%), Zydus Lifesciences (up 5.39%), Aurobindo Pharma (up 5.29%), Abbott India (up 4.85%), Mankind Pharma (up 3.69%) and Sun Pharmaceuticals Industries (up 3.53%) advanced.

Stocks in Spotlight :

Shilpa Medicare jumped 6.51% after the firm said that its wholly owned subsidiary, Shilpa Biologicals has filed its first Drug Master File (DMF) of recombinant Human Albumin 20% with the United States Food and Drug Administration.

GPT Infraprojects added 2.23% after the company announced that it has secured an order worth Rs 547 crore from Rail Vikas Nigam Limited (RVNL), which has to be executed on an engineering, procurement, and construction (EPC) mode.