Indian benchmark stock indices rebounded sharply to open in the green on Thursday, snapping a four-day losing streak and carrying momentum from a global equities rally overnight.
The Federal Reserve announced a 75-basis-point interest rate hike, its largest in more than a quarter of a century, to stem a surge in inflation, and flagged a slowing economy.
But markets were already pricing that aggressive action buoying risk assets and pushing the dollar off its two-decade highs.
The 30 stock S&P BSE Sensex opened with gains of over 500 points to trade around 53,116, and the broader NSE Nifty was up nearly 1 per cent to about 15,828 points.
From the Sensex pack, Reliance, Bajaj Finance, BPCL, Bajaj Finserv and ICICI Bank were the major gainers in the early trade, while ONGC, Bharti Airtel, Nestle, Dr Reddy's Labs and SBI Life Insurance were the top losers.
On the Nifty 50, heavyweight Reliance Industries was the top gainer, rising 2.2 per cent.
Shares of budget carrier SpiceJet fell 2.5 per cent after the company's managing director said the hike in aviation turbine fuel price was "not sustainable".
"Overnight gains in the US markets coupled with early optimism in SGX Nifty is expected to charge up local bulls, after the policy rate hike of 75 bps by the US Federal Reserve came in as anticipated," said Prashanth Tapse, Vice President for Research at Mehta Equities.
"Easing WTI crude oil prices could also boost sentiment, as domestic equities have been under severe bear hammering for the past few sessions due to relentless FII (Foreign Institutional Investors) selling," he added.
In an extremely volatile session on Wednesday, benchmark equity indexes closed in the red, see-sawing between losses and gains, marking losses for four straight days.
Indeed, on the Sensex closed 152.18 points or 0.29 per cent lower at 52,541.39, compared to Tuesday's close of 52,693.57. NSE Nifty closed at 15,692.15, 0.25 per cent lower than Tuesday's 15,741.95 points.