The 30-share barometer, which lost 385.80 points in the previous two sessions, rebounded by 105.75 points, or 0.61 per cent, to 17,338.30 with technology, banking and metal sector stocks leading the recovery.
Similarly, the wide-based National Stock Exchange index Nifty was trading 30.75 points, or 0.59 per cent, higher at 5,266.00.
Brokers said trading sentiment turned better after the country's largest software exporter TCS posted nearly 38 per cent jump in consolidated net profit at Rs 3,317.68 crore for the April-June period of FY 2013.
The company had announced the results yesterday after the market hours.
TCS shares were up 3.01 per cent to trade at Rs 1,273.25 on a flurry of buying.
Infosys, which had also announced results yesterday, remained under pressure and shed another 0.63 per cent to Rs 2,251 as company's earning failed to impress investors.
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A firming trend on the other Asian bourses also influenced the trading sentiments here, traders said.
In the Asian region, Japan's Nikkei was up by 0.28 per cent, while Hong Kong's Hang Seng index gained 0.26 per cent in early trade. The US Dow Jones Industrial Average ended 0.25 per cent lower in yesterday's trade.