The Nifty 50 rose 1.1% to 22,936.75, while the BSE Sensex gained 1.2% to 74,151.04. Both benchmark indexes had lost about 2% each over the previous seven sessions, declining in six of them as elevated crude oil prices weighed on the market.
Across Asia, shares fluctuated as earnings announcements from artificial intelligence-related companies triggered sharply mixed market reactions.
The US Federal Reserve left interest rates unchanged on Wednesday, delaying any changes to borrowing costs until after next week's US midterm elections while awaiting further inflation data. The central bank said inflation "remains elevated."
Brent crude futures fell 0.8% to 4.4 per barrel as traders assessed the risks posed by the Middle East conflict to regional energy supplies.
"Indian market is showing signs that it has bottomed out after the recent slide and the ongoing earnings season has been decent across sectors, supporting the broader sentiment," said Arun Malhotra, fund manager at CapGrow Capital.
The recovery extended across most sectors, with 15 of the 16 major sectors advancing. The broader small-cap and mid-cap indexes also gained 1% each.
Heavyweight financial stocks rose 1.2%, while information technology stocks advanced 1%, contributing to the broader market recovery.
Individual stocks recorded significant movements amid a busy quarterly earnings season. Adani Ports and Special Economic Zone and Adani Enterprises emerged as the top two percentage gainers on the Nifty 50 following their earnings announcements.
Adani Ports climbed 6.3% to a nearly four-month high after reporting higher quarterly profit on strong cargo volumes and raising its operating profit forecast.
Adani Enterprises gained 5.2% following strong July-September earnings. Meanwhile, Hindustan Unilever rose 2.3% as investors assessed its higher quarterly profit against the impact of commodity inflation.
The gains marked a recovery for Indian equities after several sessions of losses, with quarterly earnings providing support across sectors even as elevated oil prices and risks to regional energy supplies remained key factors influencing market sentiment.
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