Sensex Opens 400 Points Higher, Nifty Above 25,800 as SBI Gains 6%

Sensex Opens 400 Points Higher, Nifty Above 25,800 as SBI Gains 6%

Sensex and Nifty Start Week on a Positive Note

The benchmark indices opened higher on Monday, marking a positive start to the week as foreign institutional investors (FIIs) returned to buying on Dalal Street.

At 9:55 a.m. IST, the S&P BSE Sensex rose 377.94 points to 83,958.34, while the NSE Nifty50 gained 119.10 points to 25,812.80.

State Bank of India (SBI) led the rally, with shares climbing 6%, reflecting renewed investor confidence in the banking sector.

Market Drivers

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said:

“Clarity on the US-India trade deal indicates that Indian businesses, particularly exporters, will benefit. The uncertainty over the trade deal and its impact on the Indian economy, which was weighing on the market, has been removed. Rebounds in the US and other global markets indicate another phase of risk-on sentiment.”

He added that a positive for the market is the return of FIIs, who bought in the cash market in three out of the last four trading days. Meanwhile, the derivatives market remains heavily net short, which could provide resilience via short covering.

Sectoral Trends

Banking stocks are likely to gather strength, supported by improving credit growth, which could positively impact GDP growth and corporate earnings in FY27.

The IT sector may continue to face headwinds due to the ongoing ‘Anthropic shock’, affecting investor sentiment.

Market Outlook

Overall, the combination of clarity on the India-US trade deal, FII inflows, and strong banking sector performance has created a positive start for the Indian stock market. Analysts suggest that further gains could be supported by risk-on global cues and continued credit growth in the domestic market.