MUMBAI, Sept 19, 2007 (AFP) - India's benchmark Sensex index soared above the key 16,000-point level in early trade on Wednesday as Asian markets surged after the US Federal Reserve cut rates by 50 basis points, dealers said.

The Sensex was trading at 16,069.23 points, up 400.11 points, or 2.55 percent, over Tuesday's close after the first half hour of trade.

'The US fed rate cut was better than expected. Risk appetite will start to improve,' said Andrew Holland, strategic investment managing director at DSP Merrill Lynch.