New Delhi - India's benchmark Sensex index surged by over 350 points on Thursday buoyed by investor confidence after the country's inflation rate touched a nine-month low of 6.84 per cent.

The 30-share sensitive Sensex index of the Bombay Stock Exchange rose 361.14 points, or 3.72 per cent, to close at 10,076.43.

There was brisk buying in blue-chip stocks in the banking, realty, power and information technology sectors.

The broader 50-share Nifty index of the National Stock Exchange also rose by 3.6 per cent and ended the day's trading at 3060.76.

Market analysts said that buying picked up after reports that the falling inflation rates had raised the hopes of deeper interest rate cuts by the Reserve Bank of India in the coming week. (dpa)