The 30-share index was trading higher by 139.09 points or 0.52 per cent at 26,865.64 with all the sectoral indices led by oil&gas, PSU, auto and banking trading in the green with gains up to 1.25 per cent.
The gauge had lost 151.69 points in the previous two sessions ahead of earnings season and macroeconomic numbers due this week amid looming fears of a slowdown in the country's GDP growth.
Also, the NSE Nifty rose by 37.50 points or 0.46 per cent to 8,273.55.
Among other Asian markets, Hong Kong's Hang Seng was up by 0.55 per cent while Japan's Nikkei shed 0.03 per cent in early trade today. Shanghai Composite index was down 0.06 per cent.
The US Dow Jones Industrial Average ended 0.38 per cent lower yesterday.