Indian equity benchmarks surged on Wednesday reflecting improved risk sentiment as global stocks and bonds rose in response to stronger corporate profits and anticipation of more gradual Federal Reserve rate hikes.
The 30-share BSE Sensex index surged 203.03 points to 61,621.99, and the broader NSE Nifty-50 index opened in the green.
State Bank of India, Titan, Kotak Mahindra Bank, Dr. Reddy's, Wipro, Bajaj Finserv, Maruti, HDFC, and HDFC Bank were some of the top gainers from the Sensex pack.
Laggards included ITC, UltraTech Cement, Hindustan Unilever, and Power Grid.
Investors will parse the Fed's minutes from its most recent meeting for any indication of talks about slowing the rate of interest rate increases.
"Markets may gather steam in today's trades primarily on hopes that the coming Federal Reserve minutes will be dovish," said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.
"Other positive catalysts like WTI oil prices hovering around $80 a barrel and the Fed president favouring a smaller 50 basis point rate hike in the December meeting could prompt traders to cover their shorts ahead of tomorrow's monthly F&O (Futures & Options) expiry," he added.
Asian shares too were mostly in positive territory ahead of Fed's minutes scheduled to be released later in the day even as renewed restrictions in China dimmed investor sentiment somewhat.
"The biggest story for investors in Asia is still the China reopening," Suresh Tantia, Credit Suisse's Senior iInvestment Strategist in Singapore, told Reuters.
"We had seen China markets rally up to 20 per cent but those expectations are being dialled back, we think a reopening will be a slower process and will not be done in a hurry. That means a lot of investors are trimming their exposure, cutting their losses or booking any profits they might have made on China."
Still, investors overlooked those concerns, with Wall Street stocks rising overnight and the dollar taking a hit.
While the bond markets are screaming 'recession', global equities show a positive trend, with investors largely 'buying the dip', said a trader in Mumbai.