The 30-share index regained the psychological 28,000-mark -- for the first time since July 8 -- by surging 340.43 points, or 1.23 per cent, at 28,001.83 in afternoon trade.
Sentiment got a push after global markets climbed following Greek developments today, which had stretched into marathon overnight talks in an attempt to prevent its potential exit from the single currency union, brokers said.
All sectoral indices led by IT, technology and healthcare, were trading in the positive zone with gains of up to 1.69 per cent.
Those who notched up solid gains include Infosys, Wipro, TCS, GAIL, HDFC, NTPC and Sun Pharma.
More From This Section
Broader markets were also in a better shape, with the small-cap and mid-cap indices adding up to 1.24 per cent.
Globally, Japan's Nikkei was up 1.57 per cent, Shanghai Composite jumped 2.39 per cent and Hong Kong's Hang Seng gained 1.30 per cent.
European markets were higher in early trade.