The 30-share barometer rose 123.17 points, or 0.44 percent to 28,321.46. The gauge had gained 265.39 points in the previous session.
Axis Bank, Tata Steel, Bajaj Auto, HDFC Ltd, Sun Pharma, Coal India, Infosys, ICICI Bank, Wipro, ONGC, ITC Ltd, Tata Motors and Dr Reddy were major gainers that supported the index rally.

The NSE Nifty too gained 38.85 points or 0.45 percent to trade at 8,562.65. Brokers said continued buying by foreign funds and retail investors, tracking a firming trend at other Asian markets after the Greece's Parliament approved the austerity plan buoyed trading sentiments.

Besides, the country's trade deficit narrowing to USD 10.8 billion in June as against USD 11.7 billion in same month last year, influenced sentiment, they stated. Among other Asian markets, Japan's Nikkei was up by 0.55 percent while Hong Kong's Hang Seng rose 0.12 percent in early trade today. The US Dow Jones Industrial Average, however, ended 0.02 percent lower in yesterday.

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