Besides, a mixed trend in the other Asian markets also buoyed the trading sentiment here.
The 30-share index, which had gained 277.18 points in the previous two sessions, rose by 102.20 points, or 0.50 per cent, to 20,230.61, a level last seen on May 30.
Stocks of IT, technology, auto and metal sectors led the rise in early trade.
Similarly, the wide-based National Stock Exchange index Nifty rose by 28.80 points, or 0.47 per cent, to 6,066.85
Brokers said sentiments bolstered after the country's largest software exporter Tata Consultancy Services reported consolidated better-than-expected net profit of Rs 3,831 crore for the June quarter, up 15.5 per cent from Rs 3,318 crore in the same period last year.
Stock of TCS surged 3.37 per cent to Rs 1,716.05 in early trade, Infosys gained 1.60 per cent to Rs 2,844.25, while Wipro rose by 1.25 per cent to Rs 389.80.
In the Asian region, Hong Kong's Hang Seng index was up by 0.15 per cent, while Japan's Nikkei Index shed 1.37 per cent in the morning trade today.
The US Dow Jones Industrial Average rose 0.50 per cent to close at record highs in yesterday's trade.