The 30-share barometer, which had lost 70.99 points in the previous session, recovered by 88.47 points, or 0.50 per cent, to 17,745.68.
All sectoral indices trading in the positive zone with gains of up to 0.97 per cent.
Similarly, the wide-based National Stock Exchange index Nifty was up 19.95 points, or 0.37 per cent, at 5,382.90.
Brokers said fresh buying by funds and retail investors amid a firming trend in Asian bourses in line with overnight gains on Wall Street and European markets after comments from German Chancellor Angela Merkel reasserting her desire to save the eurozone, mainly influenced the trading sentiment.
In Asian region, Hong Kong's Hang Seng index rose by 0.53 per cent, while Japan's nikkei index by 0.63 per cent in opening trade.
The US Dow Jones industrial average index ended 0.65 per cent higher in yesterday's trade.