MARKET @ 2016 highs: Sensex jumps 485 points, Nifty ends above 8,050 on ubpeat Q4 earnings; Larsen & Toubro top gainer

Extending its gains for the third straight session on Thursday, the S&P BSE Sensex jumped 485 points to reclaim its crucial psychological level of 26,000, while the broader Nifty50 settled above its key 8050-mark as the May series derivative expiry concluded.

The headline indices hit their 2016 highs on favourable quarterly earnings. Positive cues from the global markets also contributed to the gains.

The 30-share index ended the day at 26,366, up 485.51 points, while broad-based 50-share index quoted 8,069, up 134.75 points at close.

Improving earnings have raised optimism at a time when investors are betting monsoon rains will be stronger than average, boosting the outlook for rural demand.

Private weather forecaster Skymet said on Tuesday monsoon rains are expected to be 109 percent above the long-term average, compared with its earlier estimate of 105 percent.

"Monsoon is one major positive sentiment driver and global markets are also looking calm," said Rikesh Parikh, vice-president of equities at Motilal Oswal Securities.

"Also, the results season is on the verge of getting over and so far we have not seen any negative surprises. In fact, earnings are a tad better than market estimates and this comes after some four-five quarters of dull performances."

Mirroring the optimism, foreign investors have bought Indian shares worth a net $44.18 million so far this month, taking this year's inflows to $1.84 billion.

Larsen & Toubro stock was the best performer on both the headline indices and gained 14.04 per cent on the BSE after the company reported a 18.53 per cent YoY rise in profit after tax (PAT) to Rs 2,454 crore for the March quarter.

"L&T played a significant role in the rally closing over 14% up for the session, for a company with 33k crs in revenues to exhibit a close to 20% yoy growth is just incredible," said Nikhil Kamath, Co-Founder & Director, Zerodha.

Bajaj Auto rose as much as 1.7 per cent after the two-wheeler maker on Wednesday reported a 29 percent rise in its March-quarter net profit.

However, Aditya Birla Fashion and Retail, famous for its brands such as Van Heusen and Pantaloons, fell as much as 6.8 per cent to its lowest since March 30, after March-quarter loss widened.

Meanwhile, Brent crude oil rose above $50 a barrel for the first time in nearly seven months on Thursday after an EIA report showed crude stockpiles fell by 4.2 million barrels last week.