The 30-share barometer, which has lost over 77 points in the past two trading days, rose by 194.08 points, or 1 per cent, to 19,603.77, led by gains in stocks of healthcare, consumer durables, banking and realty sectors.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 31.10 points, or 0.52 per cent, to 5,940.00.
Brokers said fresh round of buying by major players on hopes of an interest rate cut by RBI in its December 18 mid- quarter monetary policy review amid a mixed trend in Asian markets buoyed the trading sentiment.
Meanwhile in Asia, Hong Kong's Hang Seng index rose 0.37 per cent, while Japan's Nikkei shed 0.22 per cent.
The US Dow Jones Industrial Average ended 0.11 per cent higher in yesterday's trade on expectations that Federal Reserve will take fresh economic stimulus measures this week.