The 30-share barometer, which had gained 32.93 points in the previous session, shot up by 287.09 points, or 1.65 per cent, to 17,633.36.
All sectoral indices, led by metal, auto and banking, were trading in the positive zone with gains of up to 2.25 per cent.
Similarly, the wide-based National Stock Exchange index Nifty regained psychological 5,300 points level by spurting 86.00 points, or 1.64 per cent, at 5,324.40.
Brokers said sentiment turned better on widespread buying by funds and retail investors in line with a firm trend overseas after European Central Bank unveiled a plan to buy the bonds of troubled eurozone nations in a bid to tackle the region's long-running debt crisis.
In Asian region, Japan's Nikkei was up 2.08 per cent, while Hong Kong's Hang Seng index gained 2.19 per cent in early trade today.
The US Dow Jones Industrial Average had ended 1.87 per cent higher in yesterday's trade.