At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 396.76 points or 0.65% to 61,590.06. The Nifty 50 index added 115.90 points or 0.64% to 18,205.75.

In the broader market, the S&P BSE Mid-Cap index advanced 0.68% while the S&P BSE Small-Cap index gained 0.73%.

The market breadth was strong. On the BSE, 2,164 shares rose and 1,287 shares fell. A total of 136 shares were unchanged.

The Federal Reserve raised its benchmark borrowing rate by widely expected 25 basis points. The increase takes the fed funds rate to a target range of 5%-5.25%, the highest since August 2007.

Numbers to track:

The yield on India's 10-year benchmark federal paper advanced to 7.050 from 7.011 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.7975, compared with its close of 81.80 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement added 0.39% to Rs 61,201.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 101.36.

The United States 10-year bond yield fell 0.88% to 3.373.

In the commodities market, Brent crude for July 2023 settlement rose 87 cents or 1.20% to $73.20 a barrel.

Buzzing Index:

The Nifty Financial Services rose 0.78% to 19,332.75. The index declined 0.13% in past trading session.

Cholamandalam Investment & Finance Company (up 7.01%), Muthoot Finance (up 2.93%), SBI Life Insurance Company (up 2.58%), Bajaj Finance (up 2.26%), Power Finance Corporation (up 1.73%), ICICI Prudential Life Insurance Company (up 1.69%), HDFC Asset Management Company (up 1.67%), SBI Cards & Payment Services (up 1.43%), HDFC Life Insurance Company (up 1.31%) and HDFC Bank (up 1.3%) advanced while ICICI Bank (down 0.53%) declined.

Stocks in Spotlight:

Rane Engine Valve hit an upper limit of 20% after the company reported net profit of Rs 4.9 crore in Q4 FY23 compared with net loss of Rs 0.01 crore in Q4 FY22. The company's total revenue for Q4 FY23 was Rs 136.5 crore, a 24.7% increase from Rs 109.5 crore in Q4 FY22.

Adani Ports and Special Economic Zone (APSEZ) rose 1.02% after the company has entered into share purchase agreement (SPA) with Solar Energy for divestment of 100% stake of Coastal International Terminals for total consideration of $30 million.

Punjab National Bank (PNB) up 0.78%. The company announced on Thursday that Ashutosh Choudhury, chief general manager ceased to be the group chief risk officer (GCRO) of the bank on 3 May 2023.