The 30-share barometer rose by 91.65 points, or 0.47 per cent, to 19,478.79. It had lost nearly 100 points in the past three sessions.
All the sectoral indices, led by IT and interest-sensitive auto, were trading with gains up to 1 per cent.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 25.80 points, or 0.43 per cent, to 5,924.60.
Brokers said expectations of better industrial output data for October to be released later today and a firming trend on the Asian markets mainly triggered buying by funds and retail investors.
In the Asian region, Hong Kong's Hang Seng index rose by 0.45 per cent and Japan's Nikkei was up by 0.61 per cent in early trade. The US Dow Jones Industrial Average ended 0.60 per cent higher in yesterday's trade following signs of progress in fiscal cliff talks and upbeat data from Germany and Spain.