Benchmark indices continued trading firm in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 244.48 points or 0.53% at 46,507.65. The Nifty 50 index advanced 61.50 points or 0.45% at 13,629.35.
A possible approval of Moderna Inc's COVID-19 vaccine this week and progress in US stimulus talks lifted sentiment. The US Federal Reserve will issue an updated policy statement along with new economic projections on Wednesday. Traders will be watching closely for any changes to Fed view on when its benchmark policy rate might rise off zero.
HDFC (up 1.65%), HDFC Bank (up 1.01%) and TCS (up 1.21%) boosted indices.
In the broader market, the S&P BSE Mid-Cap index rose 0.73% while the S&P BSE Small-Cap index gained 0.96%.