The 30-share barometer moved up by 45.67 points, or 0.22 per cent, to trade at 20,072.28 points in early trade. The index had gained 45.04 points yesterday.
The wide-based index of National Stock Exchange, Nifty, gained 11.00 points, or 0.18 per cent, to 6,065.30.
Brokers said trading sentiment remained firm on continued buying by funds and retail investors, after the Finance Minister reaffirmed government's commitment to reforms.
Besides, a firming trend in other Asian markets after data showing that Chinese manufacturing activity had hit a two-year high in January, too had a positive impact, they said.
In the Asian region, the Japan's Nikkei rose by 1.28 per cent, while Hong Kong's Hang Seng shed 0.02 per cent in morning trade. The US Dow Jones Industrial Average ended 0.49 per cent higher in yesterday's trade.
