Besides, a mixed trend in other Asian markets, tracking another rally in the US, buoyed sentiment.
The 30-share barometer was trading higher 38.52 points or 0.14 per cent to 26,736.34 with sectoral indices, led by IT, healthcare, realty and consumer durables, rising up to 0.57 per cent.
The gauge had gained 182.58 points in the previous session.
The NSE index Nifty too was up by 7.60 or 0.02 per cent to 8,229.40.
Brokers said buying activity picked up on positive economic data as retail inflation fell to a two-year low of 3.63 per cent in November following the Centre’s demonetisation drive that led to lower consumer spending on various food items including vegetables.
This is the lowest level since November 2014 when the retail inflation was recorded at 3.23 per cent.
Shares of TCS rose 0.82 per cent to Rs 2,218.90 after Cryrus Mistry was yesterday removed as director of the company with 93.11 per cent shareholders voting for his ouster.
Stocks of state-owned Coal India plunged 2.60 per cent to Rs 297.80 after the company yesterday reported a massive 77 per cent fall in its consolidated net profit at Rs 600 crore for the quarter ended September.
Among other Asian markets, Hong Kong’s Hang Seng rose 0.42 per cent while Japan’s Nikkei fell 0.08 per cent in early trade. China’s Shanghai Composite index was down 0.25 per cent.
The US Dow Jones Industrial Average, however, surged to fresh records by gaining 0.58 per cent in yesterday’s trade.
PTI