Further, covering-up of short positions by speculators ahead of Thursday's monthly expiry in the derivatives segment, supported the upside.

Rising for the second straight session, the 30-share barometer spurted by 228.67 points, or 0.79 per cent, to 29,233.33.

The index had gained 29.55 points in yesterday's session. All sectoral indices, led by oil & gas, metal, realty and banking were trading in positive zone with gains up to 1.03 per cent.

Similarly, the National Stock Exchange index Nifty was trading above the 8,800-mark by gaining 60.10 points, or 0.69 per cent, to 8,822.20.

Brokers said pre-Budget buying by optimistic participants on hopes of growth-oriented measures and foreign capital inflows mainly buoyed the trading sentiments.

Finance minister Arun Jaitley will table the first full Budget of the Narendra Modi-led government on February 28.

Besides, a firming trend at other Asian markets following strong cues from Wall Street as US Federal Reserve hinted that a rate hike is unlikely before June and relief over Greek debt deal, triggered buying by investors and foreign funds, they added.

Among other Asian markets, Hong Kong's Hang Seng was up by 0.29 per cent, while Japan's Nikkei gained 0.18 per cent in early trade on Wednesday.

The US Dow Jones Industrial Average ended 0.51 per cent higher on Tuesday.