BENGALURU, July 27 Reuters Indian shares rebounded on Wednesday after a shaky start to the week, closing 1 higher, as Bajaj Finance and engineering major Larsen Toubro advanced on betterthanexpected earnings, offsetting investor worries ahead of the Federal Reserve39;s policy decision.

The NSE Nifty 50 index closed 0.96 higher at 16,641.8, while the SP BSE Sensex rose 0.99 to 55,816.32. The indexes have risen over 5 each so far this month as crude prices dropped, easing inflation fears.

The session started on a muted note, following IMF39;s downgrade of India39;s growth outlook and as investors braced for the U.S. Federal Reserve to hike rates by 75 basis points.

But a strong advance in European stock markets on a batch of strong results helped boost sentiment.

In Mumbai, nonbank lender Bajaj Finance climbed 2.1 to its highest in nearly three months after reporting a betterthanexpected jump in quarterly profit.

Enginering and construction conglomerate Larsen Toubro jumped 2.6 to its highest since midApril after beating profit estimates.

Top carmaker Maruti Suzuki India advanced 1.6 after reporting a rise in profit.

Meanwhile, the Nifty Pharma index added 2.3 to register its best day since May 20, with Sun Pharma gaining 3.

Food delivery firm Zomato, which crashed around 22 over the last two sessions, climbed 5.5.

Department store Shoppers Stop gained 7.9 to its highest in nearly four years after returning to a profit in the June quarter.

Tata Motors closed 0.7…