The 30-share index gained 134.85 points, or 0.48 per cent, to 28,490.47 with capital goods, consumer durables, banking, healthcare, power, auto and metal sector stocks, leading the rise.
The index had gained 128.23 points in the previous session.
Also, the National Stock Exchange index Nifty reclaimed the 8,600-mark by rising 47.10 points, 0.55 per cent, to 8,612.65.
Brokers said value-based buying by investors as select shares turned attractive after recent losses and optimism over the upcoming Budget, influenced trading sentiments here.
The US Dow Jones Industrial Average ended 0.79 per cent higher in yesterday's trade.