Short-covering of bets, today being the last session of May expiry in the derivatives segment, supported the recovery.
The 30-share index, which had lost 269.33 points in the previous two sessions, spurted by 122.99 points, or 0.40 per cent, to 30,424.63.
FMCG, realty, IT, capital goods, consumer durables, banking, teck, oil&gas, auto, PSU and metal sectors were leading the rally.
The NSE Nifty was also trading higher by 34.15 points, or 0.36 per cent, at 9,394.70.
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Fresh spell of buying by foreign investors, who were net sellers for several sessions, and further recovery in the rupee, also lifted the mood, they added.
Major gainers were GAIL, ITC Ltd, Asian Paints, ONGC, Infosys, HDFC Ltd, L&T, M&M, TCS, Coal India and Wipro, rising by up to 1.74 per cent.
However, Lupin tumbled 5.51 per cent to Rs 1,160 after the company yesterday reported over 49 per cent dip in consolidated net profit for the fourth quarter ended March.
The US Dow Jones Industrial Average ended 0.36 per cent up yesterday.