The 30-share barometer, which has lost 515 points in the last four straight sessions, rose by 130.62 points, or 0.76 per cent, to 17,233.93.
All sectoral indices, led by consumer durables and capital goods, were trading in the positive zone with gains up to 0.77 per cent.
Similarly, the wide-based National Stock Exchange index Nifty was up 37.70 points, or 0.73 per cent, at 5,234.95.
Brokers said fresh round of buying by funds and retail following a firming trend on Asian bourses on hopes of a new round of quantitative easing in the US as Federal Reserve Chairman Ben Bernanke is to appear before Congress later today, influenced the trading sentiments here.
In Asian region, Japan's Nikkei was up 0.84 per cent, while Hong Kong's Hang Seng index gained 1.39 per cent in early trade today.