The 30-share barometer that had gained 131.06 points yesterday, rose by 63.83 points, or 0.35 per cent, to 18,534.21.
All the sectoral indices, led by realty and banking, were trading in positive zone with gains of up to 0.61 per cent.
The wide-based National Stock Exchange index Nifty moved up by 14.30 points, or 0.25 per cent, to 5,629.10.
Brokers said increased buying by funds and retail investors anticipating that the government might take more reform measures to support the economy in the Winter Session of Parliament beginning today buoyed the trading sentiments.
Besides, a firming trend in the Asian region fuelled by overnight gains on the US markets also boosted the sentiment.
In Asia, Hong Kong's Hang Seng rose by 0.33 per cent, while the Japan's Nikkei by 1.23 per cent in early trade today.
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The US Dow Jones Industrial Average had ended 0.38 per cent higher yesterday.
Meanwhile, the government yesterday said it will offload its four per cent share in Hindustan Copper Ltd on Friday, starting the Rs 30,000 crore disinvestment programme for the current fiscal.