The key equity barometers traded with significant gains in mid-afternoon trade. The Nifty traded above the 18,550 mark. Bank stocks witnessed buying demand for third consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was up 308.65 points or 0.49% to 62,810.34. The Nifty 50 index added 86.20 points or 0.47% to 18,585.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index advanced 0.31%.

The market breadth was positive. On the BSE, 1,946 shares rose and 1,627 shares fell. A total of 194 shares were unchanged.

Investor heaved a sigh of relief after U.S. President Joe Biden and top congressional Republican Kevin McCarthy have reached an agreement over the weekend to lift the US debt ceiling and avoid a disastrous and unprecedented default. The deal would suspend the $31.4 trillion debt ceiling until January 2025, allowing the American government to pay its bills.

The cap on government spending in Washington's deal to raise the federal debt limit adds a fresh headwind to a US economy already burdened by the highest interest rates in decades and reduced access to credit.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose to 7.019 from previous closing of 7.003.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.6050, compared with its close of 82.6025 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement gained 0.21% to Rs 59,475.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 104.17.

The United States 10-year bond yield fell 0.68% to 3.795.

In the commodities market, Brent crude for July 2023 settlement added 30 cents or 0.39% to $77.25 a barrel.

Buzzing Index:

The Nifty Bank advanced 0.94% to 44,429.80. The index has risen 1.72% in three trading sessions.

IndusInd Bank (up 1.75%), Bandhan Bank (up 1.57%), State Bank of India(up 1.56%), AU Small Finance Bank (up 1.44%) and HDFC Bank (up 1.35%) were the top gainers.

Among the other gainers were Punjab National Bank (up 1.29%), IDFC First Bank (up 0.72%), Kotak Mahindra Bank (up 0.69%), Federal Bank (up 0.64%) and Axis Bank (up 0.62%).

Stocks in Spotlight:

Ion Exchange (India) tumbled 5.42%. The EPC company's consolidated net profit fell 2.4% to Rs 81.19 crore in Q4 FY23 as against Rs 83.20 crore in Q4 FY22. Revenue from operations jumped 30.4% year on year to Rs 647.48 crore in the quarter ended 31 March 2023

Ahluwalia Contracts (India) surged 9.97%. The company's consolidated net profit increased by 70.4% to Rs 72.16 crore on 18.1% rise in revenue from operations to Rs 863.05 crore in Q4 FY23 over Q4 FY22.

Engineers India rallied 7.35%. The company's consolidated net profit surged 140.3% to Rs 190.18 crore in Q4 FY23 as compared with Rs 79.13 crore in Q4 FY22. Net sales rose 7.6% year on year to Rs 880.10 crore in Q4 FY23.