The 30-share index, which had shed 62.24 points yesterday, moved up by 77.13 points, or 0.41 per cent, to 18,709.30.
All sectoral indices, led by auto and consumer durables, were trading in the positive zone with gains of up to 0.68 per cent.
Similarly, the wide-based National Stock Exchange index Nifty was up 21.95 points, or 0.38 per cent, to 5,685.40.
Brokers said covering-up of pending short positions by participants as today is the last session of current month's expiry in the derivatives segment influenced the trading sentiments.
Besides, increased buying in small and mid-cap stocks by retail investors supported the recovery, they said.
Meanwhile, in Asia, Hong Kong market gained 0.44 per cent, while Japan's Nikkei Index fell by 0.21 per cent.
The US dow Jones Industrial Average ended 0.33 per cent down in yesterday's trade.