Investors' sentiments were also high on hopes of a resolution in Russia-Ukraine talks.New Delhi: The Indian equity benchmarks rebounded sharply on Wednesday led by gains across all sectors.

Asian shares traded higher, tracking overnight gains in the Wall Street, with investors' focus on the U.S.

Federal Reserve meeting.

The U.S.

central bank is expected to raise its interest rate by 25 basis points (bps).

In such a case, this would be the first interest rate hike in three years.

The sentiments were also high on hopes of a resolution in Russia-Ukraine talks.Back home, the 30-share BSE Sensex jumped 1,040 points or 1.86 per cent to close at 56,817, while the broader NSE Nifty moved 312 points or 1.87 per cent higher to settle at 16,975.Mid- and small-cap shares finished on a strong note as Nifty Midcap 100 index surged 2.01 per cent and small-cap shares gained 1.17 per cent.All the 15 sector gauges -- compiled by the National Stock Exchange -- ended in the green.

Nifty Metal, Nifty Private Bank and Nifty Auto outperformed the index by rising as much as 2.63 per cent, 2.44 per cent and 2.16 per cent, respectively.On the stock-specific front, UltraTech Cement was the top Nifty gainer as the stock climbed 4.63 per cent to Rs 6,300.

Axis Bank, Bajaj Auto, IndusInd Bank and Shree Cement were also among the gainers.The overall market breadth stood positive as 2,307 shares advanced while 1,121 declined on BSE.On the 30-share BSE index, UltraTech Cement, Axis Bank, IndusInd Bank, HDFC, Bajaj Finserv, Infosys and Bajaj Finance were among the top gainers.Shares of digital payments firm Paytm also paused its losing run as the stock settled 7.15 per cent higher at Rs 634.80.

Paytm's parent One 97 Communications had tumbled by nearly 25 per cent in the previous two sessions after RBI barred Paytm Payments Bank from onboarding new customers.In contrast, PowerGrid and Sun Pharma settled in the red.