Mumbai: The BSE benchmark Sensex rallied by nearly 200 points in opening trade on Monday as IT and financial stocks rose on fresh buying by funds and retail investors, amid a firming trend in global markets.

The 30-share index, which has lost almost 377 points in the previous two sessions, recovered by 199.17 points, or 1.15 percent, to 17,391.99.

In a similar fashion, the wide-based National Stock Exchange Nifty index moved up by 58.60 points, or 1.13 percent, to 5,227.45.

Brokers attributed the rise to a firming trend in Asia in the wake of a higher close in the US market on Friday, amid easing concerns over Europe's debt crisis, as former EU commissioner Mario Monti was nominated to head a new Italian Cabinet.

Stocks of Kingfisher Airlines, which slumped to a record low of Rs 17.55 on Friday on escalating financial concerns, recovered by 4.07 percent to Rs 20.45 after reports that the company plans to cut debt.

In Asia, Hong Kong's Hang Seng Index was up 2.48 percent, while Japan's Nikkei Index rose by 1.21 percent in Monday morning trade. In the US, the Dow Jones Industrial Average closed 2.19 percent higher in Friday's trade.