Besides, the 50-share NSE Nifty reclaimed the 7,600-level by gaining 68.40 points, or 0.90 per cent, at 7,665.40.
After falling over 437 points in the past two sessions, the 30-share Sensex spurted by 217.17 points, or 0.87 per cent, to trade at 25,117.63.
Brokers said fresh spell of buying by investors and foreign funds, triggered by a firming trend in global markets, after the US Federal Reserve Chair Janet Yellen signalled that a rate hike was not likely to come before June, helped the key indices to regain their crucial levels.
Among other Asian markets, Hong Kong's Hang Seng rose by 1.44 per cent while Shanghai Composite Index was up 1.37 per cent in early trade today. Japan's Nikkei, however, was trading 0.33 per cent down.
The US Dow Jones Industrial Average ended 0.56 per cent higher in yesterday's trade.