The 30-share barometer rose by 53.50 points, or 0.27 per cent, to 19,977.28 with stocks of auto, IT, healthcare and capital goods sectors leading the recovery. The index had lost 102.83 points yesterday.
The wide-based National Stock Exchange index, Nifty, moved up by 8.60 points, or 0.14 per cent, to 6,027.95.
Brokers said the trading sentiment turned slightly better on selective buying by funds and retail investors, taking positive cues from Asian markets, following overnight gains in the US market on the back of an improvement of the weekly jobless claims data.
In Asia, Hong Kong's Hang Seng rose by 0.11 per cent, while the Japan's Nikkei by 2.35 per cent in early trade.
The US Dow Jones Industrial Average had ended 0.33 per cent higher in yesterday's trade.