Besides, the broad-based NSE Nifty reclaimed the 7,800- level to hit a high of 7,838.85 before settling at higher 7,806.60, 44.35 points or 0.57 per cent.
Domestic shares had opened on a weaker note, tracking heavy selling in other Asian markets, which remained subdued in their early trade in the wake of last week's deadly attacks in Paris and downbeat data from Japan.
Equity brokers say the market mood remained jittery despite the rebound.
Rate-sensitive banking, realty, healthcare and capital goods stocks led the recovery.
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Meanwhile, wholesale price index-based inflation stood at (-)3.81 per cent in October, as against (-) 4.54 per cent in September, boosted investor sentiment as an uptick in October inflation showed signs of a revival in consumer demand.
The rise in Sensex was supported by GAIL, which surged the most firming by 4.62 per cent, followed by Tata Steel 3.44 per cent, Dr Reddy's 3.43 per cent, SBI 3.23 per cent, Vedanta 2.75 per cent and ITC 2.69 per cent, among others.
Sectorwise, the BSE bankex gained the most by rising 1.51 per cent, followed capital goods 1.07 per cent, FMCG index 0.50 per cent healthcare index 0.49 per cent.
Buying activity by retail investors helped the small-cap and mid-cap indexes gain up to 0.50 per cent.
Other Asian markets saw a mixed trend after data showed Japan's economy slipped back into recession in the September quarter, while European stocks were slightly better in their early trade.