The statement said that Fed will maintain the stimulus for at least another two years as economy was showing the signs of weakness more than expected.

Stock markets in the Asia-Pacific region staged a relief rally on Wednesday in the wake of reassuring signals from the U.S. Federal Reserve, which had sparked a bounce on Dalal Street since opening bell.

Investors awaited long for the news with mixed sentiments and were wary about the implication of the Fed move but regained confidence gradually in global equities after the news.

World stock markets had been rolling since the start of the August on fears of the United States falling into another recession after it being downgraded by S&P on Friday.

But Fed's move of keeping interest rates lower for at least another two years again gave them a chance to enter into markets. Stagnant rates usually give the companies a chance to raise profitability and growth to attract more and more investors.

European stocks were trading fairly under positive zone where FTSE was up 84 points, CAC rose 40.45 points and DAX up by 140.84 points.

Asian markets also couldn't resist themselves to exhibit bull run.

The Nikkei 225 in Japan gained 94.26 points, and the Hang Seng in Honkong climbed 521.08 points, followed by Taiwan Index up by 243.20 points.

Though Indian equity benchmarks erased few some of its early gains after scuffle emerged between North and South Korea, but 30-share BSE Sensex was still up and by 285 points at 17,143 and Nifty 50 was up by 89 points at 5,162 around 1:10 pm IST.

The moves came after stocks in the United States surged broadly Tuesday following the Fed"s pledge that it would hold short-term interest rates near zero for at least two more years to support the faltering U.S. economy.

Tata Motors remained the biggest gainer on the street with 6.34% rise at Rs 846.

Major gainers were most of the IT and banking sectors like TCS, Infosys, SBI, Reliance Industries, L&T, BHEL, HDFC Bank and ICICI Bank.

Brent Crude again rebound by 2.76% and was trading at $105.40 around 1:15 pm.

Rebound in crude prices lead to fall in major Oil shares. IOC, HPCL, ONGC and BPCL were major losers on BSE.

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