New Delhi, Mar 16 (IANS): Keeping its early gains intact, India's key equity indices -- Sensex and Nifty - settled sharply higher on Wednesday led by rally in all the sectoral indices.

Among all, Nifty metal, realty, and oil and gas were the top movers during the session, rising 2.6 per cent, 3.6 per cent, and 2.0 per cent, respectively.

Coming to the indices, Sensex settled 1.9 per cent or 1,040 points up at 56,816 points, whereas Nifty 1.9 per cent or 312 points up at 16,975 points.

With most of the Nifty 50 companies rising on Wednesday, Ultratech Cement, Axis Bank, Bajaj Auto, IndusInd Bank, and Shree Cement rallied the most. These stocks rose 4.6 per cent, 3.6 per cent, 3.4 per cent, 3.3 per cent, and 3.0 per cent, respectively.

"Investors are now eyeing the outcomes of the Fed meeting which will be concluded today. General market expectations predict an increase in rate hikes for the first time in three years," said Mohit Nigam, Head - PMS at Hem Securities.

"Indian rupee appreciated against US dollar on the back of dollar selling from banks. Meanwhile, the Ukrainian president stated that peace talks are looking more realistic now, indicating easing of tension between the two countries."