The 30-share index was trading higher by 127.47 points, or 0.43 per cent, at 29,364.62, with all indices led by technology, IT, power and healthcare trading in the green with gains up to 0.79 per cent.
The gauge had lost 184.25 points in the previous session.
The NSE Nifty rose by 46.35 points, or 0.51 per cent, to 9,091.55.
Retail investors got back to buying and foreign money kept coming in amid a firming Asian trend on renewed optimism for tax reforms in the US.
Major players that supported the recovery were Axis Bank, Sun Pharma, Tata Motors, Wipro, HDFC Ltd, Asian Paints, NTPC and ICICI Bank, gaining by up to 1.96 per cent.
Hong Kong’s Hang Seng was up by 0.50 per cent while Japan’s Nikkei rose 1.07 per cent in early trade today.
Shanghai Composite, however, shed 0.23 per cent.
The US Dow Jones Industrial Average ended 0.22 per cent lower yesterday.