Mumbai: Indian stock markets witnessed a sparkling start on the occasion of Diwali, with benchmark indices jumping over half a per cent in early trade on Monday.

The Sensex opened higher by 661 points, or 0.8 per cent, to trade at 84,614, while the Nifty climbed 191 points, or 0.74 per cent, to 25,901.

“Fresh long positions should be considered only if the Nifty sustains above the 26,000 mark. While the broader market undertone remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial in the sessions ahead,” market experts said.

Strong buying was seen in banking and heavyweight stocks. Kotak Mahindra Bank, Axis Bank, HDFC Bank, and Bajaj twins were among the top gainers on the Sensex, rising up to 3 per cent.

On the other hand, ICICI Bank was the top loser, slipping 2.2 per cent as investors booked profits after the lender’s Q2 results. Ultratech Cement and Mahindra & Mahindra also traded lower in early deals.

In the broader market, the Nifty MidCap index gained 0.66 per cent, while the Nifty SmallCap index added 0.19 per cent.

The Bank Nifty index touched a fresh record high, rising 0.7 per cent during the session.

All major sectoral indices were in the green, with Nifty IT, Private Bank, and Pharma indices leading the rally, each up around 0.7 per cent.

Foreign Institutional Investors (FIIs) extended their buying streak for the second consecutive day, purchasing equities worth Rs 309 crore on October 17, while Domestic Institutional Investors (DIIs) continued their strong support, buying equities worth over Rs 1,526 crore on the same day.

The festive cheer on Dalal Street reflected strong investor sentiment as markets kicked off the Diwali week on a positive note.

Analysts said that in the current environment of heightened volatility and mixed market cues, traders are advised to maintain a cautious “buy-on-dips” approach, particularly when using leverage.

“Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively,” they added.

IANS