Stocks staged a smart rally in trade led by heavy buying in FMCG stocks like Hindustan Unilever and pharma.
The Sensex ended the day higher by 146 points, ahead of the statement from the US Federal Reserve due later today after the completion of its FOMC meet.
Investors are likely to look for clues from the US Fed with regards to interest rate hikes in the US.
Leading the set of gainers were heavyweight Reliance Industries along with Hindustan Unilever, Cipla, Bharti Airtel and Wipro.
Shares in Tata Steel was the biggest gainer from the Nifty after Unions deferred a proposed strike at its UK plant.
Shares in ACC which fell to a 52-week low on Tuesday gained ground after the company resumed limestone mining operations at its Bargarh Cement Works.
Banking stocks ended the day flat, with most stocks like ICICI Bank and Axis Bank moving in a narrow range through the day. Federal Bank was the exception though as the stock surged a huge 4 per cent.
IT stocks also had a quiet session with marginal gains seen in Infosys and TCS. Ramky Infra shares gained 20 per cent on reports that company intends to monetise operational road assets.
Meanwhile, most of Asia ended the day with gains, while Europe was trading with marginal gains ahead of the US Federal Reserve decision.