The 30-share index spurted 148.46 points, or 0.51 per cent, to trade at 29,132.95.
The gauge had rallied by 241.17 points in the previous session on the back of robust GDP data for the December quarter and positive global cues.
All the sectoral indices, led by metal, auto, oil & gas and consumer durables, were trading in positive zone with gains of up to 1.33 per cent.
The National Stock Exchange index Nifty too climbed 43.70 points, or 0.48 per cent, to 8,989.50.
Brokers said that sentiments were high largely due to a firming trend in other Asian markets after the US bourses closed at new highs in yesterday’s trade. There has been a growing optimism over corporate tax cuts and other policy proposals reiterated by US President Donald Trump during his speech before the Congress.
Among other Asian markets, Hong Kong’s Hang Seng was up 0.34 per cent, while Japan’s Nikkei rose 1.29 per cent in early trade today. Shanghai Composite Index too gained 0.11 per cent.
The US Dow Jones Industrial Average ended 1.46 per cent higher in yesterday’s trade.
PTI