Besides, covering-up of short positions by speculators in some stocks also helped trading sentiments to improve.
The 30-share index rose by 130.02 points, or 0.59 per cent, to 21,870.11, with all the sectoral indices led by realty and capital goods were trading in positive zone, rising up to 0.97 per cent. The index had lost 92.77 points in the previous session.
The wide-based Nifty of the National Stock Exchange, regained 6,500 level by recovering 35.30 points, or 0.54 per cent, to trade at 6,518.40.
In other Asian markets, Hong Kong's Hang Seng gained 0.16 per cent in early trade today, while Japan's market closed for a public holiday.
The US Dow Jones Industrial Average ended 0.67 per cent higher yesterday.