The 30-share BSE index, which had gained 56.67 points in the past two sessions, rallied further by 136.79 points, or 0.79 per cent, to 17,324.13 with all sectoral indices, led by realty and IT, trading in the positive zone clocking gains of up to 1.43 per cent.
The wide-based National Stock Exchange index Nifty moved up by 32.70 points, or 0.63 per cent, to 5,241.70.
Brokers said increased buying by funds as well as retail investors at prevailing levels, mainly helped Sensex to rise further.
In the Asian region, the Hong Kong's Hang Seng Index rose by 1.18 per cent in early trade today. Japanese markets are closed today. The US Dow Jones Industrial Average ended 0.18 per cent higher in previous session on Friday. PTI SUN RS KPS RAH