The 30-share index, which had lost 150.77 points in the previous session, was up 207.21 points, or 0.80 per cent, to 25,913.14, with all sectoral indices led by realty, metal and IT trading in the positive zone gaining up to 1.22 per cent.
The NSE Nifty too soared 53.20 points, or 0.68 per cent, to 7,882.30.
Equity brokers said fresh positions built up by investors tracking gains in other Asian bourses and overnight rally in US markets ahead of the Federal Reserve's rate decision this week bolstered trading sentiment.
The US Dow Jones Industrial Average ended 1.40 per cent higher in yesterday's trade.