India's stock market bounced back Wednesday and ended a week of sharp losses after the U.S. Federal Reserve cut interest rates.

The benchmark of the Bombay Stock Exchange, the Sensex, rose more than five percent, 864 points, to close at 17.594 points. It was the first gain in seven days.

India's National Stock Exchange also rose, closing at 5,203 points.

Wednesday's gains followed a plunge by the Sensex of more than 10 percent at its opening Tuesday, causing trading to halt for nearly an hour.

Analysts say India's market resurgence is due to the U.S. central bank cutting a key interest rate by three-quarters of one percent Tuesday. The cut was in response to international worries over a slowing U.S. economy amid losses in the subprime mortgage business.

The International Monetary Fund said the U.S. rate cut was appropriate and helpful. But the IMF said a significant slowdown in world economic growth this year still appears inevitable.

Some information for this report was provided by AFP and AP.