Besides, a firming trend in other Asian markets buoyed the trading sentiments here.
The 30-share index, which had lost 606.58 points in the previous two sessions, recovered by 128.14 points, or 0.50 per cent, to 25,608.95, with all the sectoral index, led by realty, banking and metals, trading in positive zone with gains up to 1.31 per cent.
Also, the National Stock Exchange index Nifty rose 38.20 points, or 0.50 per cent, to 7,640.80.
Brokers said a firming trend in Asian markets on the back of Chinese data showing a recovery in the world’s second-largest economy, and value-buying by funds and retail investors after recent sell-off, influenced the sentiments here.
They said, however, caution ahead of RBI’s policy review tomorrow, limited the gains.
Meanwhile, overseas investors have pumped in a staggering USD 6 billion into the Indian securities market in July — taking their overall net inflows since beginning of 2014 to more than USD 26 billion, driven by an investment-friendly government at the Centre.
Among other Asian markets, Hong Kong’s Hang Seng was up 0.24 per cent while Japan’s Nikkei rose 0.03 per cent in early trade today.