Mumbai: The BSE benchmark Sensex surged over 406 points in early trade on September 14 on flurry of buying by funds and retail investors, driven by strong global cues after the Federal Reserve unveiled a fresh stimulus plan to help bolster the U.S. economy.

The 30-share barometer, which has gained nearly 710 points in the previous seven sessions, shot up further by 406.45 points, or 2.26 percent, to 18,427.61.

All sectoral indices, led by banking, metals and oil and gas, were trading in the positive zone with gains of up to 3.36 percent.

Similarly, the wide-based National Stock Exchange index Nifty regained psychological 5,500 points level by climbing 118.15 points, or 2.17 percent, at 5,553.50.

Market experts said the rise in domestic market is in line with a firm trend overseas after the Federal Reserve unveiled a fresh stimulus plan to help spur the US economy, triggering widespread buying activity.

Stocks of oil companies were back in demand after the government hiked diesel prices by 5 per litre on September 13, which would reduce the subsidy burden, brokers said.

In Asia, Japan’s Nikkei was up 1.54 percent, while Hong Kong’s Hang Seng index gained 2.28 percent in early trade on September 14.

The U.S. Dow Jones Industrial Average had ended 1.55 percent higher in September 13 trade.