A spike in infections in Europe along with lower liquidity support from developed market central banks has dampened the risk appetite of several investors. The gains made in the two days resulted in the stock benchmarks erasing Monday's losses. A day earlier, both indices had gained close to 1%.

Mumbai: Indian stock indices extended gains on Wednesday, mirroring upsides in rest of Asia, but sentiment remained cautious in the wake of the global surge in Omicron Covid-19 cases.