The 30-share barometer gained 90.93 points, or 0.45 per cent, to 20,202.54 points. The index had lost over 174 points in the previous two sessions.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 19.30 points, or 0.32 per cent, to 6,133.40.
Brokers said buying by funds in select stocks amid a better trend in the Asian region following overnight gains on the US market, mainly influenced the trading sentiment.
Meanwhile, Japan's Nikkei was up by 0.39 per cent, while trading on the Hong Kong stock exchange had been delayed due to a black rainstorm warning.
The US Dow Jones Industrial Average gained 0.34 per cent to close at new all-time highs yesterday.