Benchmark indices opened the week higher, after a solid 1400 points rally on the Sensex last week. Asian markets were trading higher, as comments of rise in interest rates in the US were taken positively by the markets.
The belief is that the rise interest rates in the US, means that the country is showing good growth, which could boost global growth.
Leading the set of gainers from the Nifty and the Sensex was State Bank of India, which saw a solid rally on 2 per cent in trade.
The stock rallied, as several brokerages upgraded the stock, following quarterly numbers by India's largest bank. The belief for analysts is that the worst for PSU banks in terms of asset quality may now be behind.
Maruti was trading marginally weak, after reports that it was recalling some cars to fix issues related to airbags, and other related problems.
Sun Pharma dropped marginally after reports that the US just department had subpoenaed Sun Pharmaceutical Industries Ltd seeking information about the pricing and marketing of the generic drugs it sells in the United States.
Eros International jumped 4 per cent in trade, after the company reported a good set of quarterly numbers.
Meanwhile, the rupee opened marginally weak at 67.22 to the US dollar. Check rupee rates here