Indian share prices closed up 1.18 percent on Wednesday after pause in interest rate hikes by the US Federal reserve and fresh buying by local funds after the benchmark crossed the technical level of 11,000 points, dealers said.
However, they said the rally could be short as industrial activity may be disrupted because of heavy floods in central and western Indian states which forced oil, petrochemicals and textiles plants to shut.
The 30-share Sensex index closed up 130.21 points at 11,145.18. "The US Fed decision improved sentiment. This could however be the market's top for some time until foreign fund activity improves," said Naresh Garg, chief investment officer with private sector Sahara Mutual Fund. The US Fed Tuesday halted more than two years of interest rate hikes, keeping its benchmark rate steady at 5.25 percent after 17 consecutive increases.