However, gains were muted following profit-booking in IT, teck banking and power stocks.
With this, the BSE barometer has gathered 1,316.04 points in five sessions and stands at a fresh one and a half months high of 26,932.88, a level last seen on August 21.
Globally, other Asian markets ended mixed, while European markets were flat in their early trade.
After resuming higher, the BSE Sensex quickly recaptured the 27,000-mark and touched a high of 27,010.27, but on profit-booking it slipped into negative zone briefly. However, the index bounced back to settle at 26,932.88 -- a gain of 147.33 points or 0.55 percent.
The wider NSE Nifty too continued its rising streak to touch 8,180.95 before ending 33.60 points or 0.41 percent higher at 8,152.90.
From the Sensex pack, Tata Motors remained the top gainer for the second day with a surge of 5.81 percent to Rs 333.50 on sales data for September and reports that Jaguar Land Rover's US unit sales soared.
Other prominent gainers were ITC, Coal India, Cipla, GAIL, ONGC, HUL, Dr Reddy's, Vedanta, Sun Pharma, Tata Steel, RIL, Hero MotoCorp, Hindalco, ICICI Bank, Bharti Airtel and L&T.
Among 30-Sensex components, 19 stocks gained. While, BHEL, Infosys, Maruti Suzuki, NTPC and Axis Bank ended lower.
Sectorwise, BSE consumer durables index gained the most by surging 4.30 percent, followed by FMCG 2.41 percent, metal 2.14 percent, oil&gas 1.92 percent and PSU 1.11 percent.


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