The key equity indices traded in a narrow range in early afternoon trade. The Nifty continued to hold above the 18,600 level. FMCG shares advanced for sixth day in a row. 

At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 429.82 points or 0.69% to 62,931.51. The Nifty 50 index added 118.80 points or 0.64% to 18,618.15. 

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index advanced 0.48%. 

The market breadth was strong. On the BSE, 2,022 shares rose and 1,443 shares fell. A total of 187 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. 

Derivatives: 

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 4.20% to 12.40. The Nifty 29 June 2023 futures were trading at 18,693.40, at a premium of 75.25 points as compared with the spot at 18,618.15. 

The Nifty option chain for the 29 June 2023 expiry showed maximum Call OI of 36.3 lakh contracts at the 19,000 strike price. Maximum Put OI of 41.5 lakh contracts were seen at 18,000 strike price. 

Buzzing Index: 

The Nifty FMCG index rose 0.83% to 50,804.45. The index has added 3.95% in six sessions. 

ITC (up 1.22%), Dabur India (up 0.77%), Procter & Gamble Hygiene and Health Care (up 0.67%), Hindustan Unilever (up 0.55%) and Emami (up 0.49%) were the top gainers. 

Among the other gainers were Nestle India (up 0.48%), Tata Consumer Products (up 0.39%), United Spirits (up 0.34%), Colgate-Palmolive (India) (up 0.29%) and Varun Beverages (up 0.12%). 

On the other hand, Godrej Consumer Products (down 0.19%), Marico (down 0.11%) and Radico Khaitan (down 0.08%) turned lower. 

Stocks in Spotlight: 

Power Finance Corporation rose 3.76%. The company's consolidated net profit jumped 45.9% to Rs 4,676.71 crore in Q4 FY23 as against Rs 3,205.88 crore posted in Q4 FY22. Total income rose 6.4% year on year (YoY) to Rs 20,074.11 crore in the quarter ended 31 March 2023. 

Neuland Laboratories fell 3.48%. The company announced that the US FDA had issued a Form 483 with three observations post the inspection of its manufacturing facility located in the state of Telangana. 

Lupin added 2.09%. The company said that its Canadian subsidiary Lupin Pharma Canada has received approval from Health Canada to market a generic version of Spiriva (tiotropium bromide inhalation powder), which is used for the treatment of chronic obstructive pulmonary disease (COPD). Tiotropium Bromide Inhalation Powder (RLD Spiriva) had estimated annual sales of $42 million in Canada (IQVIA MAT Q4 of 2022).