The Nifty regained the 5,000-mark at close on the back of heavy short covering, in the second half of the trading day, owing the derivatives expiry.

The index on Thursday gained 86 points at 5,003. The Sensex ended at 16,666, up 279 points.

The markets opened on a flat note at 16,410 mirroring subdued global cues. Recovery in the Asian stocks helped the Sensex cut its initial losses and rebound into green.

The markets extended gains owing to strength in realty, metal and FMCG stocks. The rally was also supported by the positive opening of the European markets. Major indices like FTSE, DAX and CAC 40 were up around 2% each.

The Sensex ended near its day's high of 16,694 and finally settled with gains of 278 points at 16,666.

The market breadth was positive, out of 2,881 shares traded, 1,658 advanced and 1,108 declined on the BSE.

The midcap and the smallcap indices advanced 1% each to 6,646 and 8,377, respectively.

All the sectoral indices ended in the green, bankex, auto and the oil&gas indices were up over 2% each.

Axis Bank and Indusind Bank gained 5% each at Rs 1,216 and Rs 186, respectively on the bankex.

TV Eighteen and MVL advanced 9% each to Rs 78 and Rs 61, respectively on the midcap index.

S Kumar Nation and Sujana Metal zoomed 10% to Rs 74 and Rs 20, respectively on the smallcap index.