Continuing its rising streak for the third straight session, the 30-share index rose by 96.90 points, or 0.47 per cent, to 20,908.34. The index had gained nearly 275 points in the previous two sessions.
All the sectoral indices led by banking and consumer durables were trading in positive zone with gains up to 0.63 per cent.
The NSE Nifty regained 6,200 level by rising 24.60 points, or 0.40 per cent, to 6,210.70.
Brokers said continued buying by funds and retail investors, tracking a firming trend on the other Asian bourses following overnight gains on Wall Street, influenced the trading sentiment here.
Besides, covering-up of short positions by speculatives in view of tomorrow's monthly expiry in the derivatives segment also supported the upside in select stocks, they said.
In the Asian region, Hong Kong's Hang Seng Index rose by 0.49 per cent, while Japan's Nikkei was higher by 1.35 per cent in the morning trade today. The US Dow Jones Industrial Average gained 0.64 per cent in yesterday's trade.