Rising for the sixth day, the 30-share index spurted 191.66 points, or 0.52 per cent, to hit a new peak of 36,740.07.
The gauge gained 973.86 points in previous five sessions to close at a record high at 36,548.41 on Thursday.
Sectoral indices, led by IT, metal, teck, oil & gas and consumer durables were trading in the positive zone with up to one per cent gains.
The 50-share NSE Nifty rose 48.15 points, or 0.43 per cent, to 11,071.35.
Shares of Infosys gained over 1.42 per cent ahead of first quarter results, scheduled to be released later in the day.
Public sector bank stocks took a beating after weak Index of Industrial Production (IIP) and inflation data.
According to two sets of official data released on Thursday, retail inflation spiked to a five-month high of 5 per cent in June on costlier fuel, despite easing food prices, reducing the possibility of an interest rate cut by the Reserve Bank in its upcoming monetary policy review.
Industrial production slipped to a seven-month low of 3.2 per cent in May due to sluggish performance of manufacturing and power sectors, while retail inflation continued to remain firm in June on costlier fuel.
Continuous buying by domestic institutional investors (DIIs), amid optimism over Q1 earnings and firming trend in other Asian markets following positive leads from Wall Street, buoyed market sentiment here, traders said.
DIIs bought shares worth a net of Rs 366.40 crore, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 742.63 crore on Thursday, provisional exchange data showed.
Asian stocks rose as China refrained from detailing retaliation plans against threatened US tariff increases.
Hong Kong's Hang Seng gained 0.58 per cent, Japan's Nikkei too edged higher 1.47 per cent, while Shanghai Composite Index shed 0.17 per cent in early deals.
The US Dow Jones Industrial Average closed 0.91 per cent higher on Thursday.