After touching a high of 35,679.74, the 30-share index was trading 220.35 points, or 0.62 per cent, up at 35,650.78.
Similarly, NSE Nifty rose 56.45 points, or 0.54 per cent, to 10,527.45.
In the previous session, the BSE barometer rallied 519.11 points, or 1.49 per cent, to close at 35,430.43; while the NSE Nifty soared 159.80 points, or 1.55 per cent, to end at 10,471.
According to analysts, news of disengagement between India and China has relieved participants, after days of heated arguments.
Further, positive sentiment in global markets and unabated foreign fund inflows also supported domestic equities, they said.
International oil benchmark Brent crude futures fell 0.52 per cent to USD 42.41 per barrel.