Continuing upward trend for the third straight session, the Sensex rose 165 points to capture the 27,000-mark as investors indulged in widening their bets amid sustained foreign fund inflows coupled with firm global cues.
The 30-share index, which had gained 175.18 points in the previous two sessions, added 165 points, or 0.61 per cent, to 27,008.14 in early trade.
All sectoral indices led by metal, banking, auto, PSU and realty were trading in the green rising up to 1.17 per cent.
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Brokers said sentiment remained upbeat with investors and foreign funds building up long positions, driven by a series of positive factors such as forecast of a normal to excess rainfall this monsoon, robust GDP numbers and encouraging earnings.
A firm trend at other Asian markets, following a strong lead from US markets and an appreciating rupee against the dollar accelerated buying activity on domestic bourses too.
Japan's Nikkei gained 0.17 per cent while Hong Kong's Hang Seng up 0.24 per cent in early trade today. Shanghai Composite Index rose 0.16 per cent.
The US Dow Jones Industrial Average ended 0.27 per cent higher in yesterday's trade.