However, caution prevailed ahead of RBI's fifth bi-monthly monetary policy review tomorrow and continuing fund outflows by foreign investors amid weakness at other Asian markets.
The 30-share index, which had gained 352.46 points in the previous two sessions, rose 44.52 points, or 0.17 per cent, at 26,172.72 with auto, capital goods, power, banking, realty and consumer durables sector stocks trading in the positive zone.
Brokers said pick up in buying by participants ahead of GDP data for the September quarter, to be released later in the day and hopes that the government will push for a compromise on the GST Bill in the ongoing winter session of Parliament, influenced sentiments.
They said, however, a weak trend at other Asian markets as investors await key US jobs figures and a European Central Bank meeting later this week, limited the gains.
Among other Asian markets, Japan's Nikkei lost 0.79 per cent while Shanghai's Composite index shed 1.19 per cent in early trade. Hong Kong's Hang Seng index was down 0.31 per cent.