Indian benchmark equity indices Sensex and Nifty recovered in early trading on Wednesday, September 16, after suffering sharp losses in the previous session.

The rebound was supported by value buying as investors picked up stocks following the recent decline. The 50-share NSE Nifty gained 77.20 points to trade at 23,201.85 in early deals.

However, the recovery remained limited as investors continued to monitor several global and domestic factors.

Elevated crude oil prices remained a concern for the Indian market, particularly amid heightened tensions in West Asia. Higher oil prices can affect market sentiment because India is heavily dependent on crude oil imports.

Investors were also cautious ahead of the US Federal Reserve’s monetary policy decision scheduled for later on Wednesday. The Fed’s interest-rate outlook could influence global equity markets, currency movements and foreign investment flows.

Continued selling by foreign investors was another factor limiting the market’s early gains.

Despite these concerns, positive domestic equity sentiment and value buying provided support to benchmark indices during the opening session.

Market participants are likely to track the Federal Reserve’s policy decision, movements in crude oil prices, foreign fund flows and developments in global markets for further direction.