The 30-share barometer recovered by 80.43 points, or 0.46 per cent, to 17,509.99.
All sectoral indices, led by capital goods, metals and power, were trading with gains of up to one per cent.
Similarly, the wide-based National Stock Exchange Nifty moved up by 31.75 points, or 0.60 per cent, to 5,290.25.
Brokers said trading sentiment turned better after an expert committee on GAAR recommended postponement of the tax provision by three years, triggering buying by participants.
Besides, a firming trend in Asian region on hopes of fresh monetary easing following hints from the US Federal Reserve, too supported the upside in stock prices here.
In Asia, Hong Kong's Hang Seng rose by 0.44 per cent, while the Japan's Nikkei by 0.16 per cent in early trade today.
The US Dow Jones Industrial Average, however, ended 0.69 per cent higher in Friday's trade.