The US Federal Reserve once again came to the rescue of global markets, sending the BSE benchmark Sensex sharply up by 368 points in late morning deals on all-round buying support.
The Federal Reserve's latest announcement that it will lend about 200 billion dollars of Treasury Securities to the credit markets to prevent further damage, boosted the global market sentiment on Wednesday, brokers said.
After overnight gain of nearly 200 points, the 30-share index Sensex was up by 560 points at 16,683.37 in early trade.
The Sensex was later quoted at 16,491.67 at 10.30 am.
The National Stock Exchange index, Nifty, also improved by 95.55 points to 4,958.45 from last close of 4,865.90.
Besides China, which just managed to remain in the positive terrain, all other Asian markets were trading higher by nearly 2.5 per cent this morning on the back of overnight rally on Wall Street.
The Dow Jones Industrial Average and the Nasdaq Composite Index were up by 416.66 points and 86.42 points on Tuesday, highest gains in nearly last five years.
Led by realty, banking and capital goods segment, majority other sectoral shares also showed sharp-moderate gains.
Operators and retail investors, which were trapped in latest heavy sell-off, seemed to be booking profits at higher levels on concerns that US Fed move will not completely resolve the credit problems.