MUMBAI: Stock market benchmark indices Sensex and Nifty bounced back in early trade on Wednesday, tracking a rally in global peers, amid hopes of a rate cut by the US Federal Reserve and fresh foreign fund inflows.
The 30-share BSE Sensex climbed 287.94 points to 84,916.10 in early trade. The 50-share NSE Nifty went up by 86.65 points to 26,022.85.
From the Sensex firms, Asian Paints, Tata Steel, Trent, Larsen & Toubro, State Bank of India and Adani Ports were among the major gainers.
However, Mahindra & Mahindra, Bajaj Finance, Eternal and Axis Bank were among the laggards.
"Globally, stock markets continue to be bullish, aided by the sustained uptrend in the mother market US... Today, the market is likely to get another positive news from the Fed, which is expected to cut rates by 25 bps. More important than the rate decision will be the Fed commentary on quantitative tightening," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index were quoting higher.
US markets ended in positive territory on Tuesday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 10,339.80 crore on Tuesday, according to exchange data.
"A dovish tone from the US Federal Reserve could further boost liquidity flows into emerging markets like India, helping the Nifty and Sensex sustain their momentum near record highs," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Global oil benchmark Brent crude dipped 0.08 per cent to USD 64.35 a barrel.
"Volatility marked yesterday’s trade, but the key takeaway was strong FII buying, with net inflows of Rs 10,340 crore lending confidence to the markets," Prashanth Tapse, Senior VP (Research), Mehta Ltd, said.
On Tuesday, the Sensex declined 150.68 points or 0.18 per cent to settle at 84,628.16. The Nifty dipped 29.85 points or 0.11 per cent to 25,936.20.