BENGALURU, Sept 11 (Reuters) - Indian benchmarks inched towards record highs on Monday, led by financials, with their gains in contrast to a drop in Asian markets ahead of key macroeconomic data from major economies.

The Nifty 50 index was up 0.53% at 19,925.20 by 10:00 a.m. IST, while the S&P BSE Sensex rose 0.48% to 66,930.93. Both the benchmarks are less than 1% shy of their record highs, hit on July 20.

The more-domestically focused small-caps and mid-caps gained over 1.4% and 0.8%, respectively and hit fresh record highs.

"The Nifty is likely to make another attempt at a new record high," said VK Vijayakumar, chief investment strategist at Geojit Financial Services, but cautioned "some profit booking in small-caps is advisable as large foreign selling may re-emerge at higher levels."

All 13 major sectoral indexes logged gains. High-weightage financials rose 0.5%, while banks, public sector banks added 0.5% and 1.8%, respectively.

Financials had logged gains on Friday as well after the Reserve Bank of India

said

it would discontinue the maintenance of the incremental cash reserve ratio in a phased manner by October 7.

Asian markets were lower ahead of key macroeconomic data from China and the U.S. inflation reading, due later this week.

Investors also await India's retail inflation data for August and industrial output figures for July, due on Tuesday. Retail inflation likely eased in August, from a 15-month high in July, to 7%, according to a Reuters poll of economists.

Among individual stocks, sugar companies like Praj Industries, Balrampur Chini Mills, Dwarikesh Sugar Industries and Dalmia Bharat Sugar and Industries

gained

between 3% and 14%, on the launch of a global biofuel alliance at the G20 summit to boost the use of cleaner fuels.

SJVN

climbed

8% on signing a power purchase agreement with Bhakra Beas Management Board.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)