The 30-share barometer, which lost over 278 points in the previous two sessions, rose by 271.48 points, or 1.63 per cent, to 16,911.30 with all the sectoral indices, led by banking, metals and auto, gaining up to 1.97 per cent.
The wide-based National Stock Exchange index Nifty, regained 5,100 points level by rising 86.25 points, or 1.71 per cent, to 5,129.25.
Brokers said emergence of buying by funds and retail investors, tracking a firming trend on Asian bourses, following overnight gains at the US markets after the head of the European Central Bank pledged to protect eurozone from collapse, buoyed the trading sentiments here.
In the Asian region, Japan's Nikkei up by 1.40 per cent, while Hong Kong's Hang Seng index gained 1.44 per cent in early trade. The US Dow Jones Industrial Average rallied 1.67 per cent in yesterday's trade.