The Bombay Stock Exchange benchmark Sensex today surged by 245 points in early trade on increased buying by funds driven by an extended rally on the US markets.

The 30-share barometer, which had gained 183.35 points yesterday, moved up further by 245.30 points, or 2.93 per cent, to 8,589.05 points.

Banking, oil and gas, realty and metal stocks led the rally. The wide-based National Stock Exchange's Nifty climbed 68 points to 2,685.45 points in opening trade.