The index took 33 sessions to rise 1,000 points to breach the 32,000-mark.
Asian and European stocks were up after US Federal Reserve chief indicated a gradual approach to raising interest rates, triggering increased buying by investors.
Retail inflation hit a historically low level of 1.54 per cent in June and industrial output growth slumped to 1.7 per cent in May. The numbers came out after market hours yesterday.
The Sensex surpassed its previous record of 31,804.82 touched yesterday. In past four days, the index gained almost 676.75 points.
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Similarly, the broader 50-issue NSE Nifty spurted by 75.60 points, or 0.77 per cent, to close at fresh lifetime high of 9,891.70, bettering its record of 9,816.10 hit yesterday.
ITC emerged as the top gainer by rising 3.03 per cent.
The largest IT exporter, TCS, rose 0.20 per cent ahead of its June quarterly earnings, due today.