The Nifty was up 165 points as investors went on a buying frenzy, even as the rupee recovered against the dollar and gold rallied as well.
Banking stocks were the biggest gainers in trade following the Fed decision with Yes Bank jumping 14%, while ICICI Bank gained 8%, IndusInd Bank jumped 9% and State Bank of India gained 4%.
PSU Banks also saw a smart jump in trade with notable gainers being Union Bank, Oriental Bank, Canara Bank, Syndicate Bank and Bank of India.
Other notable gainers in trade today was Bharti Airtel which rallied 5%, DLF gained 6% and BPCL was up 1%.
Software stocks were subdued in trade following the sharp rally in the rupee. TCS, Infosys and HCL Tech were trading flat today.
Mid Cap stocks also saw a sharp flare up with notable gainers from the space being Karnataka Bank, Unitech, Vijaya Bank, Unitech, Punj Lloyd and HDIL.
Pharma stocks like IT stocks were subdued in trade following gains in the rupee. Dr Reddy's Labs, Sun Pharma and Cipla were all trading flat.
The only losers from the Nifty today were TCS, NMDC, Infosys, Cipla and HCL Tech.
Meanwhile, markets in Asia were trading sharply higher following the Fed decision. The Jakarta Composite gained as much as 4.63% in trade, while the Japanese Nikkei and the Hong Kong's Hang Sang were up as much as 2% each.