Indian equity benchmarks rebounded on Wednesday after a two-day decline, with the Sensex and Nifty gaining nearly 1% each, following a positive trend in the European stock market. Heavy buying in IT and bank stocks also supported the recovery in equities.

The Sensex jumped 547.83 points or 0.99% to settle at 55,816.62. During the day, it surged 584.6 points or 1% to 55,853.09. The Nifty climbed 157.95 points or 0.96% to 16,641.80.

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The broader indices ended in green with the BSE Midcap index up by 0.90%, while the Small cap index was up by 0.38%. The top gaining sectoral indices on the BSE were Healthcare up by 1.73%, Capital Goods up by 1.68%, PSU up by 1.47%, IT up by 1.34%, and Basic Materials up by 1.17%, while Telecom down by 0.77% the only losing index on BSE.

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Major gainers from the Sensex pack were Sun Pharma up by 3.39%, SBI up by 2.76%, Larsen & Toubro up by 2.67%, TCS up by 2.33%, Asian Paints up by 2.31%, Ultratech Cement up by 2.23%, Bajaj Finance up by 2.14%, IndusInd Bank up by 1.88%, Dr. Reddy’s Labs up by 1.86% and Axis Bank up by 1.78%.

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Among the losers were Bharti Airtel down by 1.32%, Kotak Mahindra down by 0.17%, NTPC down by 0.10%, Bajaj Finserv down by 0.09%, and Reliance down by 0.05%.

The rupee declined 13 paise to close at 79.91 against the US dollar.

In Asian markets, Seoul and Tokyo settled higher, while Shanghai and Hong Kong ended in the red.

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European markets were trading mostly higher during mid-session deals. The US stock markets had ended lower on Tuesday.

“Nifty broke a two-day losing streak on July 27 ahead of the US Fed meet outcome in the evening. In the process, Nifty was one of the best performers in the Asian region,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

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Brent crude, the international oil benchmark jumped 0.53% to $105 per barrel.

According to the stock exchange, foreign institutional investors again offloaded shares worth Rs 1,548.29 crore on Tuesday.