The 30-share index, which had gained 199.02 points in the previous session, added another 83.20 points, or 0.51 per cent, to 16,500.04 with all the sectoral indices led by auto were trading in positive zone with gains up to 0.92 per cent.
The wide-based National Stock Exchange index Nifty, regained crucial 5,000 points level by rising 19.70 points, or 0.40 per cent, to 5,005.35.
Brokers said besides value buying by funds and retail investors at selective stocks, having strong fundamentals, covering-up of short positions ahead of Thursday's monthly expiry in the derivatives segment also influenced the trading sentiments.
They said the mood was also helped by global rating agency Moody's comment that the sliding rupee will not impact India's sovereign ratings.
In the Asian region, the Japan's Nikkei was down 0.06 per cent, while Hong Kong's Hang Seng marginally up by 0.18 per cent in the morning trade today. The US markets remained closed yesterday for Memorial Day holiday.