The 30-share index spurted by 82.78 points, or 0.29 percent, to new peak of 28,260.66. The gauge had gained 237.24 points in the previous two sessions.
The National Stock Exchange index Nifty also rose by 16.65 points, or 0.19 percent, to trade at a fresh high of 8,447.40.
The BSE Sensex had recorded its earlier intra-day high of 28,205.71 and the Nifty clocked its peak of 8,438.10 in Monday's trade.
Continued buying by funds and retail investors amid cooling inflation and falling global fuel prices influenced trading sentiments, brokers said, adding these factors have raised hopes of a rate cut by the RBI and further economic reforms by the government.
Besides, a firming trend at other Asian bourses too supported the rising trend, they said.
All the sectoral indices led by capital goods and oil & gas were trading in positive zone with gains up to 0.87 percent.
Among other Asian markets, Japan's Nikkei was up by 1.68 percent, while Hong Kong's Hang Seng rose by 0.30 percent in  morning trade on Tuesday.

US Dow Jones Industrial Average rose 0.07 percent to close at a new high in Monday's trade.

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