Shares of auto, IT, oil & gas, technology, healthcare, banking and consumer durables firmed up on good buying support.
The 30-share barometer resumed higher at 17,701.20 and shot up to 17,795.81, before quoting at 17,783.55 at 1030 hrs, a gain of 126.34 points, or 0.72 per cent, from its last close.
The NSE 50-share Nifty also moved up by 33.10 points, or 0.62 per cent, to 5,396.05 at 1030hrs.
Major gainers from the Sensex pack were Tata Motors (2.44 per cent), Hindustan Unilever (1.70 per cent), HDFC (1.27 per cent), Infosys (1.20 per cent), ITC (1.20 per cent), M&M (1.17 per cent), Reliance Ind (1.12 per cent) and Maruti Suzuki (1.12 per cent).
Foreign institutional investors (FIIs) bought shares worth net Rs 95.01 crore yesterday, as per provisional figures from the stock exchanges.
Asian markets were mostly higher in the early trade on positive cues from US stocks and after comments from Germany's chancellor to ease euro-zone debt worries.
Key benchmark indices in Singapore, Japan, Hong Kong and Indonesia were up between 0.10 per cent to 0.95 per cent, while those in Taiwan and South Korea were down by 0.19 per cent to 0.47 per cent.