The 30-share barometer which had gained 29.63 in the previous session, added 116.29 points, or 0.63 per cent to 18,455.29.
All the sectoral indices led by realty and auto were trading in the positive territory with gains up to 1.10 per cent.
The wide-based National Stock Exchange index Nifty moved up by 32.60 points, or 0.59 per cent, to 5,604.00.
Brokers said buying by funds and retail investors in line with a firming trend in the Asian region following overnight rally on the US markets on hopes that lawmakers would find a way to avert a fiscal crisis, besides upbeat housing data, influenced the trading sentiments here.
In the Asian region, Hong Kong's Hang Seng rose by 1.02 per cent, while the Japan's Nikkei by 0.49 per cent in early trade today. The US Dow Jones Industrial Average ended 1.65 per cent higher yesterday.