BENGALURU - Indian shares advanced on Wednesday as hopes of easing policy stance by the U.S. Federal Reserve pushed stocks higher, while resumption of trade talks between Washington and Beijing also boosted sentiment.
The Nifty moved up 0.77% at 11,781.10 as of 0418 GMT, while the Sensex climbed 0.78% at 39,352.83.
Investors dared to hope that the Fed would follow the lead of the European Central Bank (ECB) at its policy meeting later in the day, after the ECB's Mario Draghi hinted at easing policy if inflation fails to accelerate.
Draghi's comments fuelled talk of a worldwide wave of central bank stimulus, sending MSCI's broadest index of Asia-Pacific shares outside Japan up 0.6% in early trade.
Back home, most sectors traded higher, with the Nifty public sector bank index rising over 1%, and the Nifty metals index gaining 1.9%.
"Resumption of hopes of a U.S-China trade resolution and expectations of a favourable outcome from the Fed has resulted in global equities rising and has an impact on Indian markets also," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"We will look forward to more FII inflows and resolution of liquidity issues locally till the run up to the budget in July."
Reliance Industries rose 1.6% after the newspaper Mint reported that the company had plans to infuse 200 billion rupees ($2.88 billion) in its telecom arm Reliance Jio.
Jet Airways' shares continued their bear run, falling 10%, ahead of its tribunal hearing after its lenders sought for the company's bankruptcy to recover their dues.
Steel stocks rallied after China's iron ore futures surged to a record high. Tata Steel topped the blue-chip gainers list, rising 3.8%.
Can Fin Homes rose 4% after its parent Canara Bank received an approval to sell stake in the home financing company.
($1 = 69.5225 Indian rupees)