The 30-share index, which had lost about 110 points in early trade on hints of rate hike in December by US Federal Reserve Chair Janet Yellen, rebounded to quote 121.40 points, or 0.46 per cent, higher at 26,349.02 at mid-session.
The gauge had plunged by 1,290.06 points in the previous four sessions.
Value-buying in most of the counters and a higher European opening also helped in boosting the sentiment, brokers said.
Also, the 50-share Nifty reclaimed the 8,100-mark by recovering 42.45 points, or 0.52 per cent, to 8,122.40.
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Among the gainers were: NTPC, Sun Pharma, Hero MotoCorp, M&M, Bharti Airtel, ONGC, Cipla, Bajaj Auto, RIL, Maruti Suzuki, Lupin and HDFC Ltd.
Broader markets were also back in better shape with mid-cap and small-cap indices adding up to 0.78 per cent.
Globally, Hong Kong's Hang Seng gained 0.43 per cent, while Japan's Nikkei rose by 0.59 per cent.
European markets were also higher in their early trade.