Indian markets opened the week of February 9, 2026, on a decisively strong note, fueled by a landmark India-US trade agreement and the removal of several penal tariffs. The Nifty 50 surged past the 25,800 mark in early trade, while the Sensex rallied over 500 points, reflecting a sharp improvement in investor sentiment following the weekend's diplomatic breakthroughs. The rally is underpinned by the return of Foreign Institutional Investors (FIIs), who turned net buyers with an inflow of ₹1,950 crore in the most recent session. This shift follows a period of sustained selling and is providing much-needed resilience to the domestic benchmarks. Banking and financial stocks are leading the charge, bolstered by State Bank of India's impressive Q3 results, which saw a 24% year-on-year profit surge to ₹21,028 crore. Technical indicators suggest a constructive "buy on dips" environment. The Nifty faces immediate resistance in the 25,850 to 25,900 range, with a decisive move above 26,000 likely to open the path toward new lifetime highs near 26,300. On the downside, 25,500 remains a crucial support zone, coinciding with major moving averages. Bank Nifty is demonstrating similar strength, trading above 60,500 with potential targets reaching 61,400 in the near term. Sectoral performance remains mixed but largely positive. While the IT sector continues to navigate the "Anthropic shock" and concerns over artificial intelligence developments, exporters in the auto and metal industries are gaining traction due to the new trade framework. Public Sector Undertaking (PSU) banks have emerged as the standout performers, with the PSU Bank Index climbing over 3.5% in early sessions. On the macroeconomic front, India continues to be the fastest-growing G-20 economy. Recent projections from Moody’s place real GDP growth at 6.4% for FY27, while the RBI has nudged its own estimates higher to 7% for the early quarters of the next fiscal year. Easing inflation, which is projected to average 2.1% for the current year, provides the central bank room to maintain its neutral stance, further supporting equity valuations. Investors are keeping a close watch on upcoming US labor data and the domestic release of the new Consumer Price Index (CPI) series on February 12. While overbought conditions may trigger intermittent volatility, the combination of robust domestic liquidity, improving credit growth, and stable corporate earnings continues to support a positive bias for the Indian equity landscape.