Asian stocks rose across the board as crude oil steadied on hopes that big producers will cap output.
Minutes from the US Federal Reserve also showed policymakers were divided over how to interpret the financial market volatility, suggesting it was backing away from the four rate hikes that were signaled for this year in December.
“Any kind of move on the global side wherein the Fed comforts the market further, will have a positive rub-off on our market,” said Pankaj Pandey, head of research at brokerage ICICI Direct.
“Liquidity globally is under stress at this time, and what we have seen is that typically when crude is making new lows, outflows sort of pick up.”
The broader NSE Nifty ended 1.17 per cent or 83 pints higher at 7,192, after hitting a high of 7,215.10 intra-day, while the benchmark BSE Sensex gained 1.14 per cent or 267 points to close at 23,649.
Dr. Reddy’s Laboratories ended 4.5 per cent higher after its board on Wednesday approved a share buyback for up to Rs 1,569 crore.
Railway sector-linked stocks such as Kalindee Rail and Alstom jumped on media reports which said India’s Cabinet Committee on Economic Affairs had approved the construction of six railway lines and a railway bridge.
Continued weakness in rupee supported gains in IT stocks. The rupee has fallen 3 per cent so far in this year.
Monsanto India declined after the Competition Commission of India (CCI) ordered investigation into a Monsanto joint venture over whether the company abused its dominant position as a supplier of genetically modified cotton seeds.