Mumbai, A global rally on the back of an expected US election outcome, along with healthy domestic Q2 results and a rise in foreign fund inflows, pushed the Indian equity indices higher on Thursday.

Globally, investors appeared upbeat about the prospects of a "blue wave" outcome in the US elections, as seen in the rally in world markets.

In Europe, the Bank of England held interest rates at 0.1 per cent and extended the size of its quantitative easing program by 150 billion pounds as it forecasts the UK economy to contract in the fourth quarter.

Back home, volumes on the NSE were just above the recent averages.

Among sectors, metals, media, bank, PSU, FMCG, IT and auto indices were the main gainers.

Besides, the day's trade also saw an inflow of Rs 5,368.31 crore.

Consequently, the Nifty50 on the National Stock Exchange closed at 12,120.30, higher by 211.80 points, or 1.78 per cent, from its previous close.

The Sensex closed at 41,340.16 points, higher by 724.02 points, or 1.78 per cent, from its previous close of 40,616.14.

"Nifty crossing the recent high with an upgap and a very positive advance decline ratio mean that a fresh upthrust could have begun," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Nifty could face resistance at 12,246 and 12,430 on the upside while 12,018-12,025 could provide support in the near term."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Domestic market moved in tandem with the global market and marched to 8 months high, in expectation that the US presidential election is moving in favour of the Democratic Party."

"Further, investors are expecting new supportive measures from ongoing Fed policy meet while keeping rates unchanged. Positive result season and increasing inflows from foreign markets will help the market to maintain its optimism going forward."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "On the domestic side, Nifty registered a highest daily close since 19th Feb 2020 with cheerful mood above psychological 12K mark. Reliance Industries, SBI and Bajaj Finance contributed the most gains. Metal index saw highest surge with a strong show on Tata Steel, Hindalco and SAIL."

"The banking index rose for a fourth straight session, extending a rally that started after private-sector lender ICICI Bank reported a higher profit last week."