Indian equities rebounded sharply on Friday, recovering from losses earlier in the week. The key index rose 8.22%, its largest single-day gain in recent weeks, driven by short-covering and optimism over interest rate cuts by the US Federal Reserve and Japanese central bank. However, analysts cautioned that the market still lacks depth and investors remain jittery over the global financial crisis and its economic impact. They said it was too early to determine if the rebound indicated a resumption of an upward bullish trend.