Indian shares close up 3.67 pct on easing inflation

The benchmark 30-share Sensex index surged 516.19 points or 3.67 percent to 14,564.53, snapping two consecutive days of losses.

"Positive news from the US and a dip in inflation boosted sentiment," said Manoj Kakaiya, dealer at brokerage ULJK Securities.

Annual inflation slipped to 12.4 percent for the week ended August 16 from 12.63 percent the previous week, marking the first fall in prices in a month.