The 30-share barometer, which had lost 9.68 points in yesterday's volatile trade, recovered by 65.74 points, or 0.35 per cent, to 18,395.06.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 2.45 points, or 0.04 per cent, to 5,574.00.
Brokers said selective buying by major players amid a firming trend in Asian markets on hopes that the United States will avoid a 'fiscal cliff' and Greece will get its much-needed bailout, helped trading sentiments improve.
Meanwhile, in Asia, Hong Kong's Hang Seng index rose by 0.67 per cent, while Japan's Nikkei by 1.02 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.06 per cent lower in yesterday's trade.