In addition, short-covering by speculators in view of December monthly expiry in the futures and options space supported the upside. Today is the last trading session of December contracts in the derivatives segment.
The 30-share index rose 42.25 points, or 0.16 per cent, to 26,002.24, with stocks of healthcare, consumer durables, IT and metal sectors leading the recovery.
The barometer had lost 119.45 points in the previous session on year-end profit-booking and a mixed global trend.
Dr Reddy's, Coal India, Infosys, Tata Motors, Lupin, HDFC Bank, HDFC Ltd, Sun Pharma and Wipro were among major gainers, which helped the indices.
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However, Hindustan Unilever, ONGC, NTPC, SBI and Axis Bank eased up to 0.75 per cent.
The global market threw up a mixed picture.
During 2015, the Sensex dropped about 5.5 per cent while the Nifty was down 4.5 per cent.
In the rest of Asia, Japan's Nikkei rose 0.27 per cent, while Hong Kong's Hang Seng shed 0.04 per cent. Shanghai trended down 0.53 per cent in early trade today.