The 30-share index rose 56.30 points, or 0.21 per cent, to 26,370.59 with sectoral indices, led by consumer durables, IT, oil & gas, realty and auto gaining up to 1.95 per cent.
The index had lost 106.38 points in the previous session after profit-taking emerged at record levels.
The National Stock Exchange index Nifty also gained 14.55 points, or 0.18 per cent, to trade at 7,889.85.
Brokers said buying by funds and retail investors at select counters amid a mixed trend in other Asian markets after US markets posted gains yesterday as Federal Reserve minutes suggested interest rates may be hiked sooner than expected, influenced trading sentiments here.
Besides, reports of foreign funds remaining buyers in yesterday's trade on the Indian bourses supported the recovery, they said.
Among other Asian markets, Japan's Nikkei was up by 0.50 per cent, while Hong Kong's Hang Seng shed 0.28 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.35 per cent higher yesterday.