The 30-share barometer, which had climbed 271.95 points in the previous session, rose by 153.02 points, or 0.90 per cent, to 17,102.85, its highest level since May 4.
All the sectoral indices led by metals, capital goods, banking and realty sectors were trading in positive zone with gains of up to 1.43 per cent.
The wide-based National Stock Exchange index Nifty also traded marginally up by 48.30 points, or 0.94 per cent, to 5,187.35.
Brokers said increased buying by funds as well as retail investors on expectations of a rate cut by the Reserve Bank at its mid-term credit policy review later in the day today, buoyed the trading sentiment.
Besides, a firm trend in the Asian markets after Greece pro-austerity parties won enough votes to form a government also had a positive impact here, they said.
In the Asian region, the Japan's Nikkei was up 2.23 per cent, while Hong Kong's Hang Seng gained 1.79 per cent in the morning trade today.
