The 30-share index, which had gained over 128 points in the previous four sessions, gathered another 142.51 points, or 0.54 percent, to 26,585.32.
All the sectoral indices, led by consumer durables, realty and PSU, were trading in positive zone, rising up to 1.40 percent.
The NSE Nifty also shot up by 39.80 points, or 0.50 percent, to 7,944.55.
Brokers said that besides sustained foreign capital inflows and increased buying by retail investors, covering up of short positions by speculators ahead of Thursday's monthly expiry in the derivatives segment bolstered trading sentiment.
Besides, a firming trend on other Asian markets following another record close on Wall Street fuelled by positive data on US economy triggered buying activity, they said.
In the Asian region, Japan's Nikkei rose 0.23 percent, while Hong Kong's Hang Seng gained 0.25 percent in the morning trade on Wednesday.
US Dow Jones Industrial Average closed 0.17 percent higher in Wednesday's trade.

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