The BSE Sensex rose on Wednesday as power equipment makers such as Larsen & Toubro gained on hopes the government would consider taking action on import duties, while other blue chips gained ahead of the Fed meeting.
Broader gains tracked higher Asian shares on hopes the Federal Reserve will announce additional bond purchases when it concludes its two-day meeting later in the day.
Larsen & Toubro gained 0.9 percent, while BHEL rose 1.6 percent. The power minister is expected to soon submit a new proposal for a potential import tax to a cabinet of ministers, two government sources told Reuters.
The BSE Sensex provisionally rose 0.22 percent to 16,896.63 points.
The broader 50-share Nifty provisionally rose 0.33 percent to 5,120.55 points.
(Reporting by Abhishek Vishnoi; Editing by Rafael Nam)