At 14:26 IST, the barometer index, the S&P BSE Sensex, was up 74.60 points or 0.12% to 63,217.76. The Nifty 50 index rose 40.10 points or 0.21% to 18,756.25.

In the broader market, the S&P BSE Mid-Cap index added 0.18% while the S&P BSE Small-Cap index gained 0.42%.

The market breadth was positive. On the BSE, 1,915 shares rose and 1,619 shares fell. A total of 139 shares were unchanged.

Investors kept a close eye on the Federal Open Market Committee's (FOMC) interest rate decision later today, since recent indications of a slowing of inflation raise the possibility that it will halt its aggressive cycle of rate hikes.

Economy:

India's wholesale price index (WPI) based inflation has dropped to its lowest level since November 2015, reaching -3.48% in May. The decline is attributed to a favorable base effect. In April, wholesale inflation stood at -0.92%. The latest WPI inflation print is the lowest in seven-and-a-half years.

Food wholesale inflation has also decreased, falling to -1.59% in May compared to 0.17% in April. The statistics ministry recently reported that headline retail inflation reached a 25-month low of 4.25% in May.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose 0.21% to 7.017 from previous close of 7.016.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.1050, compared with its close of 82.2500 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement added 0.05% to Rs 59,250.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.13% to 103.20.

The United States 10-year bond yield fell 0.79% to 3.812.

In the commodities market, Brent crude for August 2023 settlement rose 79 cents or 1.06% to $75.08 a barrel.

Buzzing Index:

The Nifty FMCG rose 0.66% to 51,801.10. The index jumped 2.22% in three consecutive trading sessions.

Tata Consumer Products (up 5.12%), United Breweries (up 1.65%), Nestle India (up 0.7%), Godrej Consumer Products (up 0.65%), United Spirits (up 0.63%), Hindustan Unilever (up 0.36%), Marico (up 0.3%), ITC (up 0.24%), Britannia Industries (up 0.18%) and Dabur India (up 0.14%) advanced.

On the other hand, Radico Khaitan (down 0.68%), Colgate-Palmolive (India) (down 0.16%) and Varun Beverages (down 0.06%) declined.

Stocks in Spotlight:

Motilal Oswal Financial Services (MOFSL) rallied 2.55% after the company said that its material subsidiary, Motilal Oswal Home Finance (MOHFL) appointed Sukesh Bhowal as chief executive officer (CEO) effective from 14 June 2023.

Sonata Software declined 2.19%. The company announced that it has incorporated a wholly owned subsidiary (WOS) in Malaysia, Sonata Software Malaysia SDN. BHD. on 13 June 2023 to provide end‐to‐end solutions to information technology services.