Sensex opens 400 points higher, Nifty above 25,800; SBI gains 6%

Benchmark stock market indices opened higher on Monday, starting the week on a positive note as FIIs returned to buying ways on Dalal Street.

The S&P BSE Sensex was up 377.94 points to 83,958.34, while the NSE Nifty50 gained 119.10 points to 25,812.80 as of 9:55 am.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that there are tailwinds that could take the market higher in the near-term.

"Clarity on the US-India trade deal indicates that the Indian businesses, particularly exporters, will benefit. More importantly, the uncertainty over the trade deal and its impact on the Indian economy, which was weighing on the market, has been removed. The rebound in the US market and the cues from other markets indicate another phase of risk on," he added.

A big positive for the market is that FIIs who were sustained sellers in the market have bought in the cash market in three out of the last four trading days. The fact that the derivatives market continues to be heavily net short might impart resilience to the market, on expectations of short covering. Coming to sectoral moves, the ‘Anthropic shock’ will continue to impact sentiments in the IT sector. On the contrary, banking stocks are likely to gather strength on news of improving credit growth, which will have positive fall out for GDP growth and corporate earnings in FY27.