Indian Rupee, which strengthened by 48 paise to 49.11 to a dollar today, also impacted the trading positively.
The benchmark Sensex on Wednesday extended its gains and surged by another 200 points in early trade on heavy buying by funds and retail investors on cues of a firming trend in other Asian markets.
Appreciating Indian Re, which strengthened by 48 paise to 49.11 to a dollar today, also impacted the trading positively.
The 30-share index, had gained 197.42 points in the previous session on Monday, gathered another 199.92 points, or 2.18 per cent at 9,362.54 points on renewed buying in the stocks of software exporters, metals, and oil and gas sectors.
The wide-based National Stock Exchange's Nifty also rose by 65.20 points, or 1.89 per cent, at 2,849.20 points.
Sentiments on the domestic bourses were buoyed after Asian stocks rose to nearly one-month high, stock brokers said.
They said announcement of a slew of measures by RBI to pump more funds into the financial sector and the government's over Rs 30,000-crore package to boost a slowing down economy also had a positive impact on the trading sentiments.
The IT sector index was up by 75.87 points, or nearly 3.1 per cent at 2,461.85 after IT bellweather Infosys Tech shot up by Rs 23.15, or 2 per cent at Rs 1,180.40, while Satyam Computers gained Rs 4.40, or 1.95 per cent at Rs 228. TCS was up by Rs 10.10, or 1.93 per cent at Rs 532.50 and Wipro gained Rs 6.70, or 2.81 per cent at Rs 245.
Other gainers which supported the Sensex included Tata Steel, Sterlite Industries, Reliance Indsutries, Reliance Infra, BHEL, Larsen and Toubro, ICICI Bank and Ranbaxy Lab.
Meanwhile, Asian markets today opened on a positive note, with Hong Kong's Hang Seng moving up 2.76 per cent, while Japan's Nikkei rose 2.34 per cent in early trade.
