At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 121.82 points or 0.21% to 58,196.50. The Nifty 50 index added 34.85 points or 0.29% to 17,142.35.

In the broader market, the S&P BSE Mid-Cap index gained 0.45% while the S&P BSE Small-Cap index advanced 0.72%.

Market breadth was strong. On the BSE, 2,105 shares rose and 1,205 shares fell. A total of 153 shares were unchanged.

Investors look ahead to the outcome of US Federal Reserve's meeting scheduled to release later today. Market expects Fed to raise rates by 25-basis points amid the risk of financial contagion after the failures of Silicon Valley Bank and Signature Bank and concerns about the potential for a regional banking crisis.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.12% to 14.9125. The Nifty 29 March 2023 futures were trading at 17,201, at a premium of 58.65 points as compared with the spot at 17,142.35.

The Nifty option chain for the 29 March 2023 expiry showed maximum Call OI of 38.5 lakh contracts at the 17,500 strike price. Maximum Put OI of 53.2 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Metal index advanced 0.49% to 5,521.25. The index rose 0.92% in past two trading session.

Among the components of the Nifty Metal index, Welspun Corp (up 2.69%), Hindustan Zinc (up 2.45%), Hindalco Industries (up 1.58%), Jindal Stainless (up 1.29%), MOIL (up 0.87%), Hindustan Copper (up 0.56%), Vedanta (up 0.49%), APL Apollo Tubes (up 0.45%), Tata Steel (up 0.43%) and Jindal Steel & Power (up 0.22%) advanced.

On the other hand, Steel Authority of India (down 1.9%), National Aluminium Company (down 0.76%) and Ratnamani Metals & Tubes (down 0.63%) declined.

Stocks in Spotlight:

Emami rallied 5.82% after the company announced that its board will meet on Friday, 24 March 2023, to consider a share buyback.

VST Tillers Tractors surged 9.53% after the tractor maker said that it crossed a production of 5,00,000 power tillers from its manufacturing plant located at Malur in Karnataka.

Asian Energy Services jumped 6.04% after the company received a letter of award (LoA) from Svetah Energy Infrastructure FZE, UAE for operations and maintenance works (O&M) of Svetah Venetia. The estimated value of LoA is around $20 million or Rs 165 crore.