Besides, a firming trend overseas also buoyed market sentiments.
The BSE 30-share barometer spurted by 133.27 points, or 0.51 per cent, to trade at 26,159.07 with all the sectoral indices trading in positive zone with gains up to 0.96 per cent.
The NSE Nifty also maintained its rising trend and reclaimed the 7,800-mark by gaining 38.20 points, or 0.49 per cent, to trade at 7806.05, just shying away from its lifetime high of 7,808.85 reached on July 8.
Besides widespread buying by funds and retail investors on the back of encouraging Q1 earnings by bluechip companies, covering up of pending short positions by speculators helped the key indices -- Sensex and Nifty -- to continue their upward journey, stock brokers said.
Further, a firming trend in other Asian markets on easing concerns over Ukraine and overnight gains in US markets influenced the trading sentiments here, they said.
Among other Asian markets, Japan's Nikkei gained 0.16 per cent, while Hong Kong's Hang Seng was up 0.25 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.36 per cent higher in yesterday's trade.