The 30-share barometer, which had lost over 433 points in the previous two sessions to hit four-month low, rebounded by 151.44 points, or 0.92 per cent, to 16,631.02 with all the sectoral indices, led by capital goods, recovering up to 1.25 per cent.
The wide-based National Stock Exchange index Nifty also moved up by 47.35 points, or 0.95 per cent, to 5,022.15.
Brokers said emergence of buying by funds and retail investors as stocks value turned attractive after recent losses helped trading sentiments to improve.
In addition, marginally recovery on the other Asian bourses, too, had a positive impact on the trading sentiments here, they said.
In the Asian region, Japan's Nikkei up by 0.22 per cent, while Hong Kong's Hang Seng index was down marginally by 0.15 per cent in early trade. The US Dow Jones Industrial Average ended 0.75 per cent lower in yesterday's trade.