The 30-share index was trading higher by 108.98 points, or 0.40 per cent, at 26,803.26, with sectoral indices led by IT, consumer durables, realty, capital goods, auto and metal stocks emerging as major gainers, rising by up to 1.31 per cent.
The gauge had rallied 457.41 points in the previous session yesterday.
The NSE Nifty too rose 25.05 points, or 0.30 per cent, at 8,271.90.
Brokers said increased buying by retail investors and foreign funds, spread over a broad front and a firming trend in other Asian markets tracking overnight gains on European and US markets on the back of European Central Bank's move to extend stimulus programme, influenced sentiment here.
The US Dow Jones Industrial Average ended 0.33 per cent higher in yesterday's trade.
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