The 30-share barometer opened on a positive note and further picked up the momentum to to trade 192.13 points, or 1.02 per cent, higher at 19,034.21, a level last seen on October 5 (intra-day) this year.
Stocks of consumer durables, FMCG, realty and auto sectors were in keen demand, helping Sensex to regain the 19,000 level.
The BSE benchmark Sensex has rallied over 336 points in the previous two sessions, after credit rating agency Moody's said that India's outlook is stable.
Brokers said investors were optimistic that the government will be able to push through economic reforms including Foreign Direct Investment (FDI) in retail.
"Sustained foreign funds inflows on hopes that the government would be able to push through economic reforms in Parliament, helped Sensex to breach 19k level", Delhi-based stock broker Manoj Choraria said.
The 50-share NSE Nifty followed suit and shot up by a whopping 50.40 points, or 0.88 per cent, to trade at 5,777.85.