BSE Sensex rises; all eyes on Fed

Reuters Market Eye - The BSE Sensex rises 0.4 percent on Wednesday, tracking gains in Asian shares, on hopes the Federal Reserve will announce more monetary stimulus measures later in the day.

Blue chips advance, many recovering from steep falls on Monday when the RBI stunned markets by keeping interest rates on hold.

Tata Motors gains 2.7 percent, on track to recover almost all of its losses for the week, while ICICI Bank rises 1 percent after the lender had fallen 2.2 percent this week until Tuesday.

Rising hopes for fiscal measures by the government after Fitch Ratings became the second credit agency to cut India's outlook to "negative" also support domestic stocks.

However, cement maker shares such as Ambuja Cements