The 30-share barometer, which had gained 26.73 points yesterday, rose by 92.15 points, or 0.53 per cent, to 17,517.86.
All sectoral indices, led by metal, realty and auto, were trading in positive zone with gains of up to 0.84 per cent.
On the similar lines, the wide-based National Stock Exchange Nifty index moved up by 28.45 points, or 0.54 per cent, to 5,316.40.
Brokers said sentiment remained upbeat on increased capital inflows triggered by measures announced by the government last week to revive the economy and strengthen the rupee.
Besides, a firming trend in global markets on growing hopes that global central banks will take further steps to power the economy also influenced the sentiment here, they added.
In Asia, Hong Kong's Hang Seng Index was up 0.50 per cent, while Japan's Nikkei Index rose by 0.70 per cent in morning trade.
In the US, the Dow Jones Industrial Average closed 0.56 per cent higher yesterday.
