The 30-share barometer, which lost 79.49 points yesterday, rose by 116.67 points, or 0.62 per cent, to 18,790.01.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 33.10 points, or 0.58 per cent, to 5,702.70.
Brokers said sentiment buoyed after the government approved restructuring of Rs 1.9 lakh crore debt of State Electricity Boards in a move to turnaround the near-bankrupt power distribution companies.
In the power sector, stocks of Tata Power rose by 2.03 per cent, Reliance Power added 2.55 per cent, NTPC gained 1.44 per cent and Adani Power rose by 5.14 per cent.
Meanwhile, in Asian region, Japan's Nikkei was up by 0.21 per cent, while Hong Kong's Hang Seng index shed 0.20 per cent.
The US Dow Jones Industrial Average ended 0.15 per cent lower in yesterday's trade.