The NSE Nifty 50 index was up 0.74% at 16,765.2, as of 0355 GMT, while the S&P BSE Sensex rose 0.87% to 55,299.37, touching their highest level since June 3.

The U.S. Federal Reserve's 0.75 percentage point hike in interest rates, and Fed Chair Jerome Powell's comments dismissing chances of a recession gave markets some relief.

Bajaj Finance surged 5.8% to its highest in nearly three months, topping gains on the Nifty 50, after the non-bank lender reported stronger-than-expected first-quarter results.

Tata Motors slid 2.8% in its biggest intraday drop in over a month after the automaker reported a bigger loss, hit by a jump in costs.

SpiceJet dived 9.3% to a March 2020 low after India's aviation regulator on Wednesday halved the budget carrier's capacity citing recent safety snags.

Nifty 50 components Dr Reddy's Laboratories, Bajaj Finserv and SBI Life Insurance are scheduled to report results later in the day.

(Reporting by Chris Thomas in Bengaluru; Editing by Dhanya Ann Thoppil)