The 30-share barometer gained 72.48 points, or 0.36 per cent, to 20,063.38. The index had lost almost 113 points in the previous two sessions.
All sectoral indices trading in the positive zone with a gain up to 0.60 per cent.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 16.40 points, or 0.27 per cent, to 6066.30.
Brokers said fresh buying by participants on expectations of an improvement in the liquidity in the market after the Reserve Bank reduced Cash Reserve Ratio by 0.25 per cent and covering-up of short positions ahead of tomorrow's monthly expiry in the derivatives segment influenced the trading sentiments.
Besides, a firming trend in the Asian region following overnight gains on the US markets supported the trading.
Meanwhile, in Asia, Hong Kong's Hang Seng index rose by 0.47 per cent, while Japan's Nikkei up by 1.14 per cent in early trade. The US Dow Jones Industrial Average ended 0.52 per cent higher in yesterday's trade.
