The 30-share index was trading higher by 105.68 points, or 0.36 percent, at 29,241.56 with stocks of FMCG, realty, capital goods, consumer durables, power, bank and healthcare sectors, leading the rise.
The Sensex had gained 908.46 points in the previous five sessions.
Also, the National Stock Exchange index Nifty edged higher by 31.60 points, or 0.35 percent, at 8,840.95.
Brokers said optimistic buying by participants ahead of the Budget and acceleration in economic reforms by the government, led to the rise.
Further, a firming trend at other Asian markets on hopes of a settlement in Greece's debt stand-off after it emerged that the country will ask for an extension to its bailout and avoid a painful Eurozone exit, influenced trading sentiments here, they added.
Among other Asian markets, Hong Kong's Hang Seng was up by 0.20 percent, while Japan's Nikkei gained 0.96 percent in morning trade on Wednesday.
US Dow Jones Industrial Average ended 0.16 percent higher in Tuesday's trade.

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