The 30-share index, which had lost 113.24 points in the previous two sessions, recovered by 204.25 points, or 0.75 percent, to new peak of 27,230.95 with all sectoral indices, led by oil and gas and capital goods gaining up to 0.91 percent.
The National Stock Exchange index Nifty also gained 58.30 points, or 0.72 percent, to trade at fresh high of 8,145.15.
The BSE Sensex had recorded its earlier intra-day high of 27,225.85 and the Nifty clocked its peak of 8,141.90 on September 3 this year.
Brokers said that heavy buying by funds and retail investors amid firming trend in other Asian markets mainly boosted trading sentiment.
Among other Asian markets, Japan's Nikkei was up by 0.17 percent, while Hong Kong's Hang Seng rose by 0.21 percent in the morning trade on Monday.

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