New Delhi, Feb. 9 -- 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."

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