New Delhi [India], February 9 (ANI): Indian stock indices settled higher on Monday, kicking off the new week on a strong note. Analysts attribute the relative strength in the indices to the interim trade deal with the US and the possible return of foreign institutional investors.

Sensex closed at 84,065.75 points, up 485.35 points or 0.58 per cent, while Nifty closed at 25,867.30 points, up 173.60 points or 0.68 per cent.

Vinod Nair, Head of Research, Geojit Investments Limited, said, 'Positive signals from the trade deal, coupled with the return of FIIs, fuelled a risk-on sentiment in the market. Investors are closely watching upcoming results, with PSU banks delivering stronger-than-anticipated performance, helping the PSU bank index outperform.'

'Meanwhile, an accumulation strategy was observed in consumer durables and real estate stocks following the recent correction, driven by expectations of a demand revival. The recovery was broad-based, with sectors such as cement, capital goods, textiles, and consumer discretionary attracting investor interest, supported by union budget proposals and favourable trade deals,' Nair added.

Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm, said supportive cues from broader Asian markets also helped sustain the positive momentum in India through the Monday session.

'However, despite the early uptick, participation remained selective, as investors refrained from aggressive positioning ahead of key global and domestic macro cues,' said Ponmudi R.

The US and India have last week issued a joint statement that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (interim agreement).

Both countries decided to address non-tariff barriers affecting bilateral trade.

After a phone call between Prime Minister Narendra Modi and US President Donald Trump, the announcement of the conclusion of negotiations on the much-awaited trade deal was made. The Trump administration had imposed tariffs on major exporters to the US, including India and China. There was a 50 per cent tariff on goods from India entering the United States since August 2025. The tariffs have now been reduced to 18 per cent following the leaders' recent phone call. (ANI)