The 30-share barometer, which had gained almost 200 points on Friday, rose further by 144.99 points, or 0.86 per cent, to 16,984.18.
All the sectoral indices led by banking, capital goods and power, were trading in positive territory with gains up to 1.15 per cent.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 43.50 points, or 0.85 per cent, to 5,143.35.
The trading sentiment remained firm on continued buying by funds and retail investors amid a firming trend in Asian regions following Friday's gain on Wall Street on hopes for US and European stimulus measures to stoke economic growth.
In the Asian region, Hong Kong's Hang Seng rose by 1.13 per cent, while the Japan's Nikkei by 1.08 per cent in early trade today. The US Dow Jones Industrial Average ended 1.46 per cent higher in the last session on Friday.
