Sensex rises as BOJ overhauls policy; Fed decision awaited

(Reuters) - Indian shares rose on Wednesday, heading for a fifth session of gains in six, as global sentiment was lifted after the Bank of Japan (BOJ) overhauled its policy framework and recommitted itself to more policy easing in the coming weeks.

With concerns growing in recent days that the BOJ along with other major central banks is reaching the limits of its massive stimulus programme, the latest volley of measures is likely to support risk appetite in the short term.

The announcement sent Japanese stocks higher while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.35 percent. [MKTS/GLOB]

Markets are also awaiting the U.S. Federal Reserve policy decision due later in the day. Though the Fed is not expected to raise rates, investors will comb the U.S. central bank's statement for any clues on the timing of the next rate hike.

"For India and emerging markets, this (BOJ decision) is positive," said Neeraj Dewan, director at Quantum Securities, adding it could bring in more inflows to these markets.

However, Dewan noted the Fed decision is waited for further direction in markets.

The Nifty was up 0.58 percent at 8,826.55 as of 0611 GMT, boosted by financials which contributed about 12 index points.

The Sensex was 0.54 percent higher at 28,677.30, after falling as much as 0.54 percent on Tuesday.

The Nifty Bank index was up 0.34 percent after falling as much as 0.55 percent in the previous session.

The Nifty Auto index gained 0.84 percent after ending 0.7 percent lower on Tuesday.

Shares of Essel Propack rose as much as 10.42 pct to a record high after the company said unit Lamitube Technologies will raise its stake to 100 percent in Essel Deutschland Germany.

(Reporting by Tanvi Mehta in Bengaluru; Editing by Subhranshu Sahu)