Mumbai, April 15: The sensex burst into the 16K zone again with market sentiment underpinned by the robust Infosys numbers.

Investors on Dalal Street were ecstatic that the bellwether stock had come out with a bullish medium-term outlook, which lifted the gloom over the market sparked by the nervous talk of a recession in the US.

After a lacklustre start, the market surged with the ballast being provided by technology stocks which jumped 5.6 per cent.

Markets pundits said they expected a further rally on IT counters, boosted by hopes that the dollar would harden against the rupee.

“Infosys results were very much in line with our expectations. Infosys is a good company in terms of management, pay structures and dividend payouts. The Infosys stock was beaten in earlier sessions, and today’s rise can just be taken as a correction,” said D.D. Sharma, senior vice-president (equity) at Anand Rathi Securities.

After opening at 15694.41 in the morning, the market fell about 235 points during its early trade. Triggered by Infosys results, the 30-share index surged 328.30 points to close at 16135.94 for the day. The 50-share Nifty also rose about 102 points to end at 4879.65.

Analysts were, however, unsure whether a stream of strong fourth-quarter numbers would sustain the rally. Investors are worried that inflation data, the March data for the Index of Industrial Production, and the Reserve Bank of India’s monetary policy stance later this month could scupper all hopes of a rally.

“The market has welcomed the Infosys numbers, but there’s no need to be overly excited. The fourth-quarter results will be a mixed bag, but the IT and technology stocks should rally as the market thinks the dollar is appreciating against the rupee. The market will remain range bound with 14650 at the lower side and 18120 at the higher end during this quarter. In the long term, we will continue to move on global trends. A good rally can only be contributed by an increase in liquidity,” said V.K. Sharma, head of research at Anagram Stock Broking.

Technology stocks gained about 4 per cent on the sectoral index of the BSE. Stocks of heavyweights TCS and Wipro jumped 7.37 per cent and 4.52 per cent, respectively.