Besides, positive cues from other Asian markets also buoyed the sentiments.
The 30-share barometer rose by 221.20 points, or 0.87 per cent, to 25,550.34 with stocks of realty, auto, capital goods, banking and metal sectors, leading the recovery.
The gauge had lost almost 579 points in the past three sessions.
Similarly, the National Stock Exchange index Nifty regained the 7,600-mark by recovering 65 points, or 0.85 per cent, to 7,633.55.
Brokers said fresh buying by funds and retail investors on expectations that the new norms for setting up of real estate and infrastructure investment trusts, approved by the market regulator SEBI, will help attract more foreign investors to these key sectors, buoyed the trading sentiments.
Positive cues from other Asian markets in line with weekend rally in the US markets on easing of tensions in Ukraine, too fuelled buying activity on the domestic bourses, they said.
The BSE realty sector index gained the most by rising 3.25 per cent as stocks such as DLF Ltd, Phoenix Mills, India Bull Real Estate, Unitech, Sobha Developers, HDIL and DB Realty were trading up to 4.65 per cent higher.
Among other Asian markets, Hong Kong’s Hang Seng rose by 1.16 per cent, while Japan’s Nikkei moved up by 2.23 per cent in early trade.
The US Dow Jones Industrial Average ended 1.13 per cent higher on Friday.