The 30-share barometer, which has lost nearly 350 points in the past two sessions, rose by 150.80 points, or 0.81 per cent, to 18,859.78.
All the sectoral indices, led by banking and capital goods, were trading in positive territory with gains of up to 1.34 per cent.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 48.80 points, or 0.86 per cent, to 5,724.80.
Brokers said fresh round of buying by major players largely in heavy-weight stocks with the corporate earnings season approaching, helped trading sentiments to improve.
Meanwhile, in Asian region, Hong Kong's Hang Seng index rose 1.16 per cent, while Japan's Nikkei shed 0.49 per cent.
The US Dow Jones Industrial Average ended 0.19 per cent lower in yesterday's trade.
