The benchmark BSE Sensex rebounded over 143 points and the NSE Nifty regained the 7,800-mark in early trade today on value-buying in select blue-chips amid a firming trend at other Asian bourses.
Besides, covering-up of short positions by speculators supported the recovery.
The 30-share index was trading higher by 143.41 points or 0.55 per cent at 25,766.76 with all sectoral indices led by realty, power and oil&gas leading the recovery.
The gauge had lost 537.55 points in the previous session amid worries over China's economic slowdown and geopolitical tensions in the Middle East.
Besides, the NSE Nifty reclaimed the 7,800-mark by recovering 39.30 points or 0.50 per cent to 7,830.60.
Brokers said value-buying in yesterday's beaten-down blue-chips along with covering-up of short positions by speculators influenced trading sentiments.
Furthermore, a moderate recovery in Chinese shares and other Asian markets supported the rebound on the domestic market here.
Among other Asian markets, Shanghai Composite index was up 0.33 per cent, while Japan's Nikkei rose 0.41 per cent in early trade today. Hong Kong's Hang Seng index was also trading a shade higher.
The US Dow Jones Industrial Average fell 1.58 per cent in yesterday's trade.
