Positive global indices, along with fresh influx of foreign funds and a rise in crude oil prices lifted the Indian equity markets to their highest levels in 2016 on Thursday.
Besides, domestic cues such as healthy quarterly results, strong rupee and prediction of an above average monsoon rains boosted investors' risk - taking appetite.
Broad based buying in capital goods, banking and automobile stocks led the barometer 30 - scrip sensitive index (Sensex) of the BSE to its highest level in almost 21 weeks.
The wider 51 - scrip Nifty of the National Stock Exchange (NSE) touched its highest level in almost 29 weeks.
The Nifty crossed the crucial resistance level of 8, 000 points for the first time in 2016, after four previous attempts during the current year.
It swelled by 134. 75 points or 1. 70 percent, at 8, 069. 65 points.
The S&P BSE Sensex which opened at 26, 008. 25 points, closed at 26, 366. 68 points - - up 485. 51 points or 1. 88 percent from the previous close at 25, 881. 17 points.
The Sensex touched a high of 26, 398. 94 points and a low of 25, 941. 51 points during the intra - day trade.
The BSE market breadth was tilted in favour of the bulls - - with 1, 411 advances and 1, 141 declines.
The key indices had closed the previous day's trade with healthy gains.
The barometer index had zoomed by 575. 70 points or 2. 28 percent, while the NSE Nifty had risen by 186. 05 points or 2. 40 percent.
In terms of broader markets, the midcap and smallcap indices gained around a percent each.
Initially on Thursday, the key indices opened on a higher note, in - sync with their Japanese peers, and a positive close to the US markets on Wednesday.
Though caution prevailed due to F&O (Futures and Options) expiry dynamics, the domestic equity markets pushed higher, aided by positive Asian and European indices.
Besides, a healthy rise in global crude oil prices cheered investors.
The Brent index - based crude prices surpassed the $50 mark for the first time in 2016.
In addition, value buying, short covering and a strong rupee helped domestic indices surge.
Even the improved fourth quarter earnings of bluechip firms accelerated the rise.
"Positive global cues, rise in crude oil prices, and a strong rupee helped the buying momentum to continue on Thursday, " Anand James, chief market strategist at Geojit BNP Paribas Financial Services, told IANS.
Dhruv Desai, director and chief operating officer of Tradebulls, pointed out that long positions witnessed rollover and short covering spurted the equity markets higher.
"Markets after consolidating in past 19 sessions have broken out of its resistance and closed near the day's high, " Desai said.
Vaibhav Agarwal, vice president and research head at Angel Broking, said that
the key indices may incur volatility due to upcoming global events.
"The equity markets may turn volatile, as investors will eagerly await the US Fed chairman's speech to get further cues on chances of a June rate hike and the release of US GDP data tomorrow, " Agarwal said.
Both the foreign institutional investors (FIIs) and the domestic institutional investors (DIIs) turned net buyers during the day's trade.
Data with stock exchanges showed that the FIIs bought scrip worth Rs. 581. 29 crore and the DIIs purchased stocks worth Rs. 685. 37 crore.
Sector - wise, all the 19 sub indices of the BSE witnessed healthy buying, led by capital goods, banking and automobile stocks.
The S&P capital goods index accelerated by 1, 166. 49 points, followed by the banking index, which augmented by 428. 29 points and the automobile index surged by 199. 76 points.
Major Sensex gainers during Thursday's trade were Larsen and Toubro (L&T), up 14. 04 percent at Rs. 1, 472. 60; State Bank of India (SBI), up 4. 91 percent at Rs. 183. 75; BHEL, up 4. 73 percent at Rs. 128. 45; Axis Bank, up 3. 35 percent at Rs. 519. 20; and ONGC, up 3. 09 percent at Rs. 216. 70.
Major Sensex losers during the day's trade were Sun Pharmaceuticals, down 0. 87 points at Rs. 780. 05; NTPC, down 0. 67 points at Rs. 140. 90; Cipla, down 0. 57 points at Rs. 467. 60; GAIL, down 0. 31 points at Rs. 380. 10; and Reliance Industries, down 0. 27 points at Rs. 946. 65.