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

Benchmark equity indices opened higher on Monday, extending last week’s gains as foreign institutional investors (FIIs) returned to buying on Dalal Street.

The S&P BSE Sensex rose 377.94 points to 83,958.34, while the NSE Nifty50 climbed 119.10 points to 25,812.80 as of 9:55 am. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said near-term tailwinds could support further upside in the market.

“Clarity on the US-India trade deal suggests Indian businesses, especially exporters, are set to benefit. More importantly, the uncertainty surrounding the deal and its potential impact on the Indian economy—which had been weighing on market sentiment—has been removed. The rebound in US markets and positive cues from global peers point to another phase of risk-on,” Vijayakumar said.

A key positive for equities is the return of FIIs as net buyers in the cash segment in three of the last four trading sessions. Despite this, the derivatives market remains heavily net short, which could lend resilience to the market on expectations of short covering.

On the sectoral front, sentiment in IT stocks is likely to remain under pressure due to the ongoing “Anthropic shock,” while banking stocks are expected to gain traction on signs of improving credit growth. Stronger credit offtake could provide a positive boost to GDP growth and corporate earnings in FY27.