The Nifty 50 (.NSEI) index was up 0.58% at 19,794.50, while the S&P BSE Sensex (.BSESN) gained 0.65% to 66,789.13 at 10:03 a.m. IST.

All the 13 major sectoral indexes logged gains with auto index (.NIFTYAUTO) rising over 0.75%. Automaker Tata Motors (TAMO.NS) jumped as much as 4.06% to a record high after reporting a better-than-expected profit in the June quarter and a capital restructuring plan.

Index heavyweight L&T (LART.NS) climbed 3.71% to a record high on strong first-quarter results and approval of a share buyback plan. L&T and Tata Motors were the top Nifty 50 gainers.

Reliance Industries (RELI.NS) rose as much as 1.94% after a report said Qatar sovereign fund was in talks for a stake in the company’s retail arm.

“The consolidation in the markets over the last few sessions is very healthy,” said Anita Gandhi, director at Arihant Capital. “There could be room for re-rating of valuations in domestic equities due to strong earnings performance in domestic-linked sectors and stable macro fundamentals.”

In contrast to Indian equities, Asian peers were subdued ahead of the Fed policy decision, due at 11:30 p.m. IST.

“Recent encouraging (U.S.) inflation data has led to optimism that the Fed rate hike on Wednesday could be the last, and traders will be looking for confirmation from the central bank,” said Rahul Sharma, head of technical research at Equity99.

Among individual stocks, Can Fin Homes (CNFH.NS) tumbled as much as 7.3% after the housing finance firm said that employees at one of the branches committed a fraud of about 385.3 million rupees by transferring funds into different personal bank accounts

The Nifty 50 (.NSEI) index was up 0.07% to 19,684.85, while the S&P BSE Sensex (.BSESN) gained 0.02% to 66,403.50, as of 10:14 a.m. IST.

Eleven of the 13 major sectoral indexes logged gains, with the metals index (.NIFTYMET) rising 1.7% and the auto index (.NIFTYAUTO) adding 0.9%.

The rise in metals stocks comes after China, the world’s largest producer and consumer of metals, announced plans to provide further support to support its post-COVID economic recovery. JSW Steel (JSTL.NS) and Hindalco (HALC.NS) were among the top Nifty 50 gainers.

Asian markets advanced on hopes of further stimulus measures from China, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) gaining 1.5%.

Auto stocks rose, led by TVS Motor Company(TVSM.NS) on reporting a bigger-than-expected rise in quarterly profit, aided by strong two-wheeler demand.

Index heavyweight ITC (ITC.NS) lost as much as 3.26% and was the top Nifty 50 loser. The company’s board gave in-principle approval to demerge its hotels business into a new entity on Monday. ITC will own a 40% stake, while shareholders will hold the remaining.

“We believe some investors may have preferred a vertical split (100% direct),” Jefferies said in a note.

The stock has lost 6.5% so far this week. The company will host an analyst/investor call on July 27 to discuss further details on the proposed demerger.

“Believe that the gains in the market will be capped in the near-term given elevated valuations and soft start to June-quarter earnings season,” said Pankaj Chhaochharia and Abhimanyu Godara of Antique Stock Broking.

Analysts also expected caution to prevail in markets ahead of the Federal Reserve’s policy meeting on Wednesday.