The 30-share barometer gained 79.71 points, or 0.27 per cent, to 29,054.82. The index had lost 487.16 points in the previous two sessions.
Sectoral indices led by realty, FMCG, consumer durables, capital goods and healthcare were trading in positive zone with gains up to 1.06 per cent.
Similarly, the wide-based National Stock Exchange Nifty index edged higher by 13.10 points, or 0.15 per cent, to 8,768.05.
Besides, optimism over the Budget on Saturday and a mixed trend at other Asian markets influenced trading sentiments, they added.
Among other Asian markets, Hong Kong's Hang Seng index was down by 0.22 per cent, while Japan's Nikkei index gained 0.13 per cent in early trade today. The US Dow Jones Industrial Average ended 0.13 per cent lower yesterday following lacklustre housing data.