The 30-share index, which had lost over 126 points in the previous two sessions, gained 80.66 points, or 0.39 per cent, to 20,848.54, with realty, metal and oil and gas sector stocks leading the recovery.
Similarly, the National Stock Exchange index Nifty rose 34.05 points, or 0.55 per cent, to 6,212.40.
Brokers said fresh buying by funds and retailers mainly influenced the sentiment.