Mumbai

Indian equity markets closed higher on Wednesday, in line with gains across regional markets, amid expectations around the US Federal Reserve's interest rate decision supported investor sentiment.

The Nifty 50 index closed at 23,217.60, gaining 99 points or 0.43 per cent, while the BSE Sensex ended at 74,336.45, up 332.63 points or 0.45 per cent.

Large-cap stocks led the domestic market gains, with buying interest seen across banking, FMCG and automobile stocks. However, IT stocks witnessed profit booking after their recent outperformance.

"Indian equities advanced in tandem with regional markets as easing crude oil prices and a largely priced-in U.S. Fed rate hike improved investor sentiment. The constructive mood was further reinforced by a moderation in Japanese bond yields ahead of the BoJ's policy decision, supporting risk appetite across Asia," said Vinod Nair, Head of Research, Geojit Investments Limited.

Nair said large-cap stocks led the gains domestically, driven by strength in banking, FMCG and automobile counters, while the IT sector saw selective profit booking.

"Investors now await the Fed Chair's commentary for deeper insight into the future rate trajectory, with the guidance expected to influence global liquidity conditions, capital flows and the near-term direction of financial markets," he added.

Among sectoral indices on the NSE, Nifty FMCG gained 1.82 per cent, while Nifty PSU Bank rose 1.27 per cent and Nifty Private Bank advanced 0.73 per cent.

Nifty Metal gained 0.68 per cent, Nifty Auto rose 0.62 per cent and Nifty Media also advanced 0.62 per cent.

On the other hand, Nifty IT declined 1.79 per cent, while Nifty Pharma fell 0.13 per cent.

Among the Nifty 50 constituents, SBI Life, HDFC Life, ITC and Trent were among the top gainers. TCS, Wipro, Infosys and Tech Mahindra were among the major laggards.

In commodities, Brent crude was trading at USD 108 per barrel at the time of reporting.

Gold prices gained 0.74 per cent to Rs 1,51,925 per 10 grams for 24-karat gold, while silver prices rose 1.36 per cent to Rs 2,35,280 per kg.

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Asian markets also largely ended higher. Japan's Nikkei 225 gained 0.39 per cent to close at 63,734, while Taiwan's Weighted Index rose 0.74 per cent to 45,848. South Korea's KOSPI gained 1.35 per cent to close at 6,717. Singapore's Straits Times closed flat at 5,635, while Hong Kong's Hang Seng also remained largely flat at 24,682.