The 30-share index crossed the 34,000-mark by jumping 65.07 points, or 0.19 per cent, to 34,005.37. The gauge had rallied 184.10 points in the previoussession on Friday on the back of strong buying by domestic institutional investors.
There was support from all sectoral indices, driven by technology and oil and gas, with gains of up to 0.90 per cent. The NSE Nifty spurted 22.10 points, or 0.21 per cent, to a new peak of 10.515.10.
Analysts said domestic institutional buying and interest among retail investors amid robust foreign funds inflows lifted mood.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 107.87 crore while domestic institutional investors (DIIs) had also purchased equitiesworth a net Rs 371.53 crore on Friday, as per provisional data.
ONGC, Dr Reddy's and TCS surged 1.86 per cent. Asian stocks were mixed ahead of year-end holidays.