The 30-share benchmark index ended 137.38 points higher at 19,517.15 with 16 of its components closing in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 0.78 percent or 44.75 points higher at 5,780.05 on Tuesday.
Confidence was boosted after the Reserve Bank of India purchased into bonds and government seemed hopeful of financing its current account deficit without drawing down reserves.
Meanwhile in the New Delhi bullion market, gold plunged by Rs 505 to Rs 30,380 per 10 grams while silver fell by Rs 280 to Rs 49,300 per kg.
--IBNS (Posted on 02-10-2013)