The Sensex had plunged 516.06 points in yesterday's trade after Reserve Bank cut repo rate by 25 basis points to 6.5 per cent, which was in line with market expectations.
The 30-share index rebounded by 117.06 points or 0.47 per cent to 25,000.65 in early trade as realty, metal, auto and banking sector stocks led the recovery.
Similarly, the National Stock Exchange index Nifty rose by 35.45 points or 0.46 per cent to 7,638.65. It had lost 155.60 points in yesterday's trade.
Among other Asian markets, Hong Kong's Hang Seng was up 0.30 per cent while Japan's Nikkei rose 0.24 per cent in early trade on rally in oil prices. Shanghai Composite Index was trading 0.09 per cent higher.
The US Dow Jones Industrial Average overnight ended 0.75 per cent down.