The 30-share barometer gained 102.92 points, or 0.50 per cent, to 20,469.74. The index had gained 173.47 points in the previous session on Friday.
All the sectoral indices, led by consumer durables and auto, were trading in the positive zone with gains up to 0.95 per cent.
Similarly, the National Stock Exchange Nifty moved up by 23.60 points, or 0.39 per cent, to 6,071.95.
Brokers said fresh positions built-up by participants on expectations of some sops in the interim Budget for 2014-15 to be announced later in the day buoyed the trading sentiment.
Besides, easing inflation which fell to an eight-month low of 5.05 per cent in January and a firming trend in the Asian region, taking strong cues from Wall Street, further boosted the sentiment here, they said.
Meanwhile, Hong Kong’s Hang Seng index was up 0.79 per cent, while Japan’s Nikkei gained 0.40 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.79 per cent higher on Friday.