The key Indian equity indices opened on a record high level on Monday with the BSE Sensex rising over 250 points, though the key index ceded some of its initial gains but maintained its northward progression.

Accordingly, the S&P BSE Sensex crossed the 47,300 points mark for the first time due to the healthy buying witnessed during the initial phase of Monday's trade. Global cues, especially the Presidential ascent given for the US stimulus, was cited as the positive trigger by analysts.

Among sectors, banking, metal, oil and gas stocks led the across-the-board surge. Around 10.30 a.m., Sensex was trading at 47,235.68, higher by 262.14 points or 0.56 per cent from its previous close. The Nifty50 on the National Stock Exchange (NSE) was trading at 13,837.45, higher by 88.20 points or 0.64 per cent from its previous close.

A stock broker reacts to the falling shares in MumbaiCredit: Reuters

"Indian markets opened up in the last week of 2020 buoyed by encouraging news from the US (President Trump signing the stimulus bill) and uppish global markets," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Liquidity rush boosted by low or zero interest rates abroad is boosting stock markets across the globe. Absence of negative triggers is resulting in the current upward momentum being continued."

According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "The market appears to be back on 'Buy on dips mode' aided by sustained FII buying. An important trend is the increasing strength of financials, particularly private sector banking stocks."

"Data and indications from top bankers suggest that the banking sector is reviving quicker than expected. NPAs in the banking system is likely to be much lower than initially feared. This explains the rising delivery based buying in frontline banking stocks. The market is all set to scale another record high."

Trump's signing of relief checks

In addition, Gaurav Garg, Head of Research at CapitalVia Global Research said: "Most of the global indices jumped after President Donald Trump signed a coronavirus relief and government funding package into law. Indian indices too witnessed strong momentum in early hours of trading and sustaining at record all-time highs as Nifty holding 13,800."

Bombay Stock Exchange
An Indian woman speaks on her phone while walking past a Bull sculpture outside the Bombay Stock Exchange (BSE) in Mumbai on February 6, 2018. Asian stocks plunged on February 6 after a record-breaking loss on Wall Street, extending a global rout as panicked investors fret over rising US borrowing costs and take profits after months of market euphoria.INDRANIL MUKHERJEE/AFP/Getty Images

"Nifty bank is up by one per cent led by both PSUs and private banks. Markets might continue to be in the grip of bulls on strong institutional inflows. Majority of indices showing strength and trading with green mark. Interestingly, higher IndiaVix which is up by four per cent indicating volatility at higher levels, therefore traders should be cautious at higher levels triggering profit booking."