New Delhi - India's benchmark Sensex surged by over 4 per cent in trading on Monday, buoyed by the government's fiscal measures, including a
4-billion-dollar package to counter the downturn in the economy.

The 30-share-sensitive index of the Bombay Stock Exchange shot up by 370.96 points - an increase of 4.14 per cent - and was quoted at 9,336.16, at 3 pm (9.30 GMT), five hours after trading opened.

The broader 50-share Nifty index of the National Stock Exchange also rose by 3.91 per cent and was ruling at 2,820 levels.

Over the weekend, the government announced a 4-billion-dollar stimulus package while the central Reserve Bank of India cut key short-term lending and borrowing rates to infuse more liquidity into the financial system.

Market analysts said expectations that the rate cut would bring much needed liquidity in the financial sector and the government's bailout package would generate demand, spurred an all-round buying by funds. (dpa)