Shares from realty, banking, oil & gas sectors lifted the market along with mid-cap and small-cap companies.
The Sensex resumed higher at 27,911.25 and moved up further to a high of 27,994.76 and low of 27,909.62, before quoting at 27,970.02 at 1010 hours, showing a gain of 95.29 points or 9.34 per cent over its previous close.
The CNX 50-share Nifty also surged by 25.65 points, or 0.31 per cent, to 8,369.90 at 1010 hours.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 355.30 crore yesterday, according to provisional data from the stock exchanges.
Asian equity markets were trading higher following overnight record close on Wall Street. Key indices in China, Hong Kong, Japan, Singapore, South Korea, and Indonesia were up 0.05 pct to 1.42 pct. In Taiwan, the Taiwan Weighted index was off 0.15 pct.