The 30-share barometer, which had lost 98.15 points in the previous session, recovered 81.43 points, or 0.30 per cent, to 26,834.33 with the sectoral indices led by capital goods, banking, healthcare and realty were trading in positive zone with gains up to 0.52 per cent.
Also, the National Stock Exchange index Nifty, regained the 8,000-mark by rising 20.60 points, or 0.26 per cent, to 8,012.30.
Brokers said sentiments turned better as funds and retail investors made fresh buying, tracking a mixed trend on other Asian markets ahead of the US Federal Reserve's monetary policy meet.
Among other Asian markets, Hong Kong's Hang Seng rose 0.20 per cent, while Japan's Nikkei was trading 0.17 per cent down in early trade.
The US Dow Jones Industrial Average ended 0.07 per cent up in yesterday's trade.