Snapping its three-session losing streak, the benchmark BSE Sensex staged a strong comeback by rising 400 points today on fresh spells of buying by foreign funds and investors amid positive global cues.

Expectation of a recovery in EBITDA margins of companies ahead of Q2FY15 earnings season and global cues saw the NIfty and the Sensex open in the green. The Nifty opened 44 points up at 7,887 while the Sensex opened 147 points up at 26,394.

Besides, >appreciating rupee which strengthened to 60.90 against the dollar and easing global crude prices that have hit two-year low, buoyed sentiments.

The 30-share barometer had lost over 383 points in the previous three sessions.

The Sensex zoomed 390 points or 1.49 per cent to end at 26,637 while the NSE Nifty jumped 118 points or 1.5 per cent to 7,960.

All sectoral indices were in the green led by capital goods, realty and banks with gains of up to 3 per cent. Volatility was down 6.78 per cent with the India Vix quoting at 13.15.

BHEL (+8.3%), Hindalco (+6%), SBI (+2.84%), HDFC (2.68%) and ICICI Bank (+2.64%) were the top gainers in the Sensex 30.

Brokers said sentiments turned better, tracking rebound on other Asian markets in response to minutes from the US Federal Reserve indicating that policymakers are wary about raising interest rates sooner than later.

Global markets

World stock markets roared their approval on Thursday of reassurances the US Federal Reserve will not rush into raising interest rates, with risk appetite flooding back into almost every asset class. The dollar jolted lower, while oil and commodity prices rose.

Bond yields in large parts of Europe, which have plunged during years of cheap funding from the Fed and the world's other major central banks, hit new record lows.

Minutes of the Fed's Sept. 16-17 meeting published late on Wednesday showed officials were wary about the dual threats of a stronger dollar and recent wobbles in the world economy as they seek an eventual exit from record low rates.

There were big gains on Wall Street and for Asia stocks, and European shares duly followed suit as Britain's FTSE 100 , Germany's DAX and France's CAC 40 rose 0.7, 1.2 and 0.8 per cent respectively in early trading.

"It (the Fed's message) has stabilised risk appetite and it was well needed following the macro economic disappointments we have had recently," said Hans Peterson, global head of asset allocation at SEB investment management.

"It is a burning issue, the pace of U.S. interest rate rises. They will tighten of course, but it will probably be very slow."

Even news that German exports slumped 5.8 per cent in August -- their biggest fall since the height of the financial crisis in January 2009, and yet another sign that Europe's largest economy is faltering -- failed to dampen the mood.

MSCI's broadest index of Asia-Pacific shares outside Japan , which touched its lowest level since March in the previous session, was up about 1.2 per cent in late trade.

Japan's Nikkei share average skidded 0.8 per cent, however, as the yen rose against the weakened dollar.

Gold, which also tends to benefit from loose monetary policy, climbed to its highest in about two weeks, with spot gold rising about 0.4 per cent to $1,226.40 an ounce. The Fed was not the only central bank in action though. The British pound stood at $1.6165, steady on the day and holding above an 11-month low of $1.5943 on Monday, ahead of the Bank of England's policy announcement later in the session. The bank is expected to keep rates steady near record lows.

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