Indian equities climbed more than 1% on Wednesday, with banking and automobile sectors leading the rally in broad-based buying as investors awaited the United States Federal Reserve’s policy decision.

The NSE Nifty 50 index rose 1.39% to 16,894.25, while the benchmark S&P BSE Sensex was up 1.48% to 56,601.68.

Also Read| Oil price rises as Russia-Ukraine ceasefire talks fuel turbulent trade

The Fed’s two-day meeting will conclude later in the day, with the central bank largely expected to raise its benchmark overnight interest rate by a quarter point.

Domestic investors will be paying great attention to the Fed’s tone for what it means for emerging economies.

Also Read| Ukraine partners with Everstake, FTX to launch new crypto donation website

So far this year, a mix of overvaluation worries, constant selling by foreign investors, missed economic growth forecasts, and the Russia-Ukraine crisis have caused the Nifty and Sensex to fall 2.8%.

The National Stock Exchange’s 15 sector indices were all trading in the green. Nifty Financial Services and Nifty Private Bank outperformed the index, rising as high as 2.04% and 2.02%, respectively.

Also Read| Russia reciprocates sanctions on Joe Biden, Justin Trudeau for ‘Russophobic policy’

On a stock-by-stock basis, Tata Motors was the biggest Nifty gainer, up 3.23% to Rs 427. Among the winners were HDFC, Axis Bank, Maruti and IndusInd Bank.

On the BSE, the overall market breadth was positive, with 2,137 shares rising and 375 falling.

Also Read| Biden to announce $800 million in security assistance for Ukraine: Report

HDFC, Axis Bank, IndusInd Bank, Bajaj Finserv, Bajaj Finance and ICICI Bank were among the top gainers on the 30-share Sensex.

On Tuesday, the Sensex fell 709 points, or 1.26%, to end at 55,777, while the NSE Nifty fell 208 points, or 1.23%, to close at 16,663.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth Rs 1,249.74 crore on a net basis on Tuesday, according to exchange data.