The 30-share barometer, which had lost 298.16 points in the previous session, rebounded by 151.56 points, or 0.94 per cent, to 16,181.69 with all the sectoral indices, led by realty, FMCG and capital goods, recovering up to 1.41 per cent.
The wide-based National Stock Exchange index Nifty, regained 4,900 points by gaining 50.75 points, or 1.04 per cent, to trade at 4,909.00.
Brokers said emergence of buying by funds and retail investors as value of select stocks turned attractive after recent losses helped trading sentiments to improve.
In addition, reports of 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 0.14 per cent, while Hong Kong's Hang Seng index gained 0.55 per cent in early trade. The US Dow Jones Industrial Average ended 0.26 per cent lower in yesterday's trade.