Hive configuration is not reflected

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I am using hive-site.xml to change some of the configuration parameters. for ex.

<property>
  <name>hive.execution.engine</name>
  <value>tez</value>
</property>

But when I connect to the hive server using beeline with the following command -

$HIVE_HOME/bin/beeline -u jdbc:hive2://localhost:10000

It does not retain the server configuration. i.e when i run any query, it always used a MR job, however i configured the engine to be tez. But with in beeline if i do

set hive.execution.engine=tez;

It uses tez. Why is it that despite setting this in hite-site.xml, the config is not reflected. Or the beeline overrides all the config?

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I had multiple instances of hive server running and since my beeline is connecting to the one which did not read the updated configuration. Once I kill all the instances and start only one, I could see that the configuration got picked.