The 30-share barometer, which had gained 24.42 points yesterday, rose by 122.69 points, or 0.72 per cent, to 17,029.27.
All the sectoral indices led by power, banking and metal stocks, were trading in positive zone with gains up to 1.07 per cent.
The wide-based National Stock Exchange index Nifty was also up by 38.25 points, or 0.74 per cent, to 5,159.05.
Brokers said besides covering-up of pending short positions by speculators in view of monthly expiry in the derivatives segment tomorrow, firming trend on the other Asian bourses following overnight gains at the US markets also buoyed the trading sentiments.
In the Asian region, the Japan's Nikkei was up 0.31 per cent, while Hong Kong's Hang Seng gained 1.16 per cent in the morning trade today. The US Dow Jones Industrial Average ended 0.26 per cent higher in yesterday's trade on the back of a smaller-than-expected decline in house prices in April.