BENGALURU, Jan 31 Reuters Indian shares recovered from a weak start on Wednesday, led by a rise in index heavyweights HDFC Bank and Reliance ahead of the keenly awaited Federal Reserve monetary policy decision.

The bluechip NSE Nifty 50 index rose 0.50 to 21,630.10 points and the SP BSE Sensex was up 0.53 at 71,517, as of 1035 a.m. IST.

Both the indexes had lost about 0.3 in early trade. The volatility index hovered around the 10month high hit in the previous session, when the indexes opened higher but ended with losses, mainly due to profit booking in Reliance Industries.

We expect heightened volatility in the markets to prevail ahead of the two key events, the Fed policy and India39;s union budget, said Anita Gandhi, founder and head of institution at Arihant Capital.

The Fed is expected to keep interest rates unchanged in its policy decision, due after the Indian market closes, and any clarity regarding the timeline of rate cuts would have a major bearing on global markets, said Gandhi.

The Indian government is due to announce its interim budget on Thursday morning, which is likely to trigger stockspecific movements in response to sectoral allocations.

HDFC Bank, the heaviestweighted Nifty stock, rose 1.7 after a 0.7 drop on Tuesday.

Reliance, the secondheaviest Nifty stock, rose 1. It dropped 2.8 on Tuesday after jumping 7 to a record high to start the week.

Relative valuation comfort has triggered investor interest in largecaps like Reliance and HDFC,…