The Bombay Stock Exchange benchmark Sensex on Tuesday surged to close at above 16K-level on heavy buying support in stocks belonging to IT counter, following Infosys Tech's announcement of its earnings for the fiscal.
The 30-share Sensex, which was down by over 234 points in early trade, bounced back to close higher by 346.02 points at 16,153.66 as index related heavyweight stocks Infosys, Wipro, Tata Consultancy and Reliance Industries recorded handsome gains.
The key index touched the day's high of 16,249.46 and a low of 15,573.03 points.
The second wide-based National Stock Exchange index Nifty rose by 101.85 points, or 2.13 per cent, at 4,879.65. It touched the day's high of 4,917.10 and a low of 4,708.30 points as market turned volatile at mid-way.
IT sector led the rally as the sectoral index gained the most by 203.10 points at 3,862.48. Marketmen said sector major Infosys's earnings were in line with market expectations. The company's share rose the most in two weeks, while Tata Consultancy Services advanced to its highest since February 5.
Infosys gained Rs 88.35 at Rs 1,510.80 and Tata Consultancy by Rs 66.95 at Rs 975.10. Wipro rose by Rs 18.35 at Rs 424.65, Satyam Computers by Rs 18.85 at Rs 452.05 and Tech Mahindra by Rs 31.90 at Rs 855.20.
Marketmen said trading sentiment changed after Infosys said it expects sales to rise 21 per cent to a record levels in the year ending March 2009.
They said some of the Reliance pack of stocks belonging both the Ambani brothers were also in limelight and supported the rally.