Key benchmark indices on Thursday edged higher on the back of market sentiment boosted by gains in European stocks and on hopes of more reforms in the wake of clearance by government to direct transfer of urea subsidy.

Sensex jumped 173.65 points or 0.93 per cent to settle at 18,804.75, its highest closing level from October 5, 2012.

The 50-unit S&P CNX Nifty at NSE surged 55.90 points or 0.99 percent to 5,708.05.

CNI Research's CMD Kishore P Ostwal said that the Street never wanted to be short ahead of Infosys results on Friday. “CLSA’s report of 40 per cent correction may not go well with Infosys as Infosys may announce close to Rs 2,400 crore profit which is ahead of street expectations."