The Sensex on Thursday recovered in early trade amid Asian markets trading lower after the Federal Reserve raised interest rate by 25 basis points.
Experts said the market had already discounted the expectations of a US rate hike.
The Sensex which fell almost 150 points to 26,431 level within minutes of opening rose almost 275 points to 26,685 level at 9:45 am.
The Nifty too was trading over 24 points higher at 8205 level.
IT stocks rallied after dollar rose to record highs and fueled Indian market recovery. The BSE IT index rose almost 150 points to 10,070 level.
TCS was the top Nifty gainer, rising 2.25 percent or 48 points to Rs 2,256 level. Infosys rose to the second position to Rs 1017.95, a rise of 1.79 per cent.
Asian markets
Japan's Nikkei 225 index gave up early gains to fall 0.2 percent to 19,225.24 after the release of upbeat manufacturing data. Hong Kong's Hang Seng fell 1.7 percent to 22,074.16 and Australia's S&P ASX 200 dropped 1.1 percent to 5,5,26. 30. South Korea's Kospi lost 0.4 percent to 2,030.80 and the Shanghai Composite index fell 0.3 percent to 3,131.67.
US marketsStocks had their worst day in two months after the Fed's announcement, and four stocks fell for every one that rose on the New York Stock Exchange. The Standard & Poor's 500 index fell 18.44 points, or 0.8 percent, to 2,253.28, its biggest percentage loss since mid-October. The Dow Jones industrial average fell 118.68 points, or 0.6 percent, to 19,792.53. The Nasdaq composite fell 27.16, or 0.5 percent, to 5,436.67.