The Bombay Stock Exchange benchmark Sensex on Monday surged by almost 280 points in opening trade on Ambani brothers burying their differences to take a step towards reconciliation in their long-running feud.

The 30-share index, which lost 74.07 points in the previous trading session, shot up by 279.30 points, or 1.69 per cent to 16,724.91 in the opening trade.

The wide-based National Stock Exchange index Nifty regained the 5,000-points level by rising 89.50 points, or 1.81 per cent, to 5,020.65 points.

Brokers said trading sentiment turned better after the Ambani brothers agreed to cancel existing non-compete agreements, triggering widespread buying, led by Reliance Industries stocks.

More In: Markets | Business